RBI gives UWB a chance to save itself: CNBC
07 Sep 2006
United Western Bank is getting a chance to save its own sinking ship. The Reserve Bank of India has asked UWB to present a detailed proposal today. But the RBI will also look at bids from other banks. CNBC-TV18 finds out what exactly the RBI is talking about.
The RBI says that UWB should submit a proposal to infuse Rs350 crore capital. The RBI has kept 7 September, 2006 as the deadline for this.
SICOM says that they have submitted the revival plan to the UWB board. The UWB Board is to then approve the plan and submit it to the RBI.
The sum of Rs 350 crore will be infused by SICOM, Government of Maharashtra and one non-government leading FI. The UWB Board will approach the non-government FI. Also, UWB is looking at changing its professional management.
HDFC has joined hands with SICOM to bid for control of United Western Bank. HDFC is expected to chip in part of the Rs 350 crore UWB bid along with SICOM.
Sources say that Canara Bank and ICICI Bank, along with the other interested banks have received a letter from the RBI. This letter asks banks to submit a proposal or bid for UWB.