MUMBAI: The boards of ICICI Bank and Andhra Bank on Monday approved the proposals to submit their Expression of Interests (EoIs) to the Reserve Bank of India (RBI) for acquiring Maharashtra-based United Western Bank Ltd. (UWB). Canara Bank has also submitted its EoI to the RBI.

Other banks, which have shown interest in United Western Bank, are Allahabad Bank, Federal Bank and Standard Chartered Bank (Stanchart). Except Standard Chartered Bank (which is not a listed entity on any Indian stock exchange), all others have informed the stock exchanges about their intention of taking over United Western Bank.

The Central Government had placed United Western Bank under moratorium on Saturday last "in the public interest, in the interest of depositors and the banking system,'' as the bank was unable to come up with any credible plan to raise fresh capital to bring its capital to risk weighted asset ratio (CRAR) to the prescribed level.

An Andhra Bank official stated that "its board has given permission to submit EoI to RBI to take over United Western Bank.''

Canara Bank has submitted its EoI to the RBI and requested it to permit the bank to carry out due diligence in order to submit its detailed proposal. The bank has informed the Bombay Stock Exchange that its board of directors has taken a decision to submit EoI for takeover or acquisition or amalgamation of United Western Bank, "in view of a number of positive synergies existing between the two banks, especially in terms of the network of branches, geographical contiguity, the bank's excellent tract record as the largest nationalised bank and UWB's need for a strong, effective and professional management.''

ICICI Bank is of the opinion that United Western Bank's strong rural presence and its network of over 240 branches and extension counters can be leveraged to grow its rural and SME (small and medium enterprises) banking operations.

Meanwhile, Standard & Poor's Ratings Services said on Monday that its foreign currency ratings and outlook on ICICI Bank (BB+/Positive/B) are not immediately affected by the bank's announcement of its intention to submit a bid for United Western Bank. The All India Bank Officers' Association (AIBOA) called upon the Central Government and the RBI to take immediate and effective steps to merge United Western Bank with a public sector bank.

PTI reports:

State Govt. keen on reviving the bank

The Maharashtra Government has stepped in with a proposal to fund the restructuring of United Western Bank, headquartered in Satara.

The Government has asked the State Industrial Investment Corporation of Maharashtra (SICOM) to finance the revamp plan.

When contacted, Maharashtra Industries Minister Ashok Chavan said the Government was awaiting SICOM's reply on the matter.

However, the board of directors of United Western Bank on Monday met and resolved to prepare a reconstruction proposal to maintain the independent identity of the bank.

Protect depositors, says IGF

The Investors' Grievances Forum (IGF) on Monday said the RBI should ensure total protection to all depositors of United Western Bank.

"The interest of depositors as well as investors is to be protected and strict action has to be taken against wilful defaulters,'' IGF President Kirit Somaiya said here. He said small investors had a 59 per cent stake in the bank.

Expressing shock at the way the apex bank placed it under moratorium, Mr. Somaiya said the RBI should ask for merger first before declaring moratorium of the bank.

"How can the RBI allow the bank to go in for a rights issue only six months ago and how can a bank having a deposit base of Rs. 6,000 crore become a defaulter in a span of five months?'' he asked.

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