PNB all set to take over Nedungadi Bank
By Our Banking Bureau | 11 Sep 2002
New
Delhi:
Punjab National Bank (PNB) is set to take over Nedungadi
Bank .The banking division under the ministry of finance
is currently processing the application on the part of
PNB. The Reserve Bank of Indias (RBI) approval for the
takeover has already been obtained.
The acquisition will be as per the internal valuation done by the RBI recently. After the internal valuation, the central bank had restricted the Bhantias the majority equity-holders of the bank from being on the banks board.
Both the banks are listed following PNBs listing after its maiden initial public offering in March 2002. PNB closed at Rs 43.7 on the Bombay Stock Exchange (BSE) on 9 September while Nedungadi Bank closed at Rs 30.5 on the BSE. PNB had a volume of 25,125 shares on the BSE and 80,502 on the National Stock Exchange (NSE) while a total of 5,425 shares had traded on the NSE in the case of Nedungadi Bank and 949 shares on the BSE.