The Hindu : Business : United Western gets additional directors

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Wednesday, Sep 06, 2006

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United Western gets additional directors

The bank submits reconstruction scheme to Reserve Bank

NEW DELHI: The struggling United Western Bank (UWB) on Tuesday informed the Bombay Stock Exchange that the Reserve Bank of India (RBI) nominees, M. Radhakrishnan and S. K. Gogia, had been appointed as additional directors on its board, effective from September 2. However, UWB's Director K. H. Navandhar resigned from its board.

The board of UWB, meanwhile, submitted a reconstruction scheme to the RBI.

As a part of the scheme, the bank said, it has committed to bring in funds immediately to meet all liabilities and achieve adequate capital to risk weighted assets ratio (CRAR) as well as net worth requirements.

The board of UWB has filed an Expression of Interest to the RBI for submission of Scheme of Reconstruction by September 8. — UNI

PTI reports from Mumbai:

Citibank shows interest

Global banking major Citibank on Tuesday confirmed that it had submitted an Expression of Interest (EoI) to the Reserve Bank of India (RBI), with respect to `rehabilitating' United Western Bank.

A Citibank official told PTI here on Tuesday that acquiring the 220-plus branches of UWB would enable it to enhance its geographical distribution besides strengthening its franchise in western India.

At present, Citibank has 39 branches in 27 cities pan-India and if the RBI approves Citibank's bid, its network will immediately catapult beyond the 250-mark.

Distribution has proved a barrier for foreign banks thus far with the only route for inorganic expansion available being buying into a distressed bank. Hence, it is not surprising that Citibank has jumped at the opportunity to amalgamate UWB with itself.

However, its attempt to take over Ganesh Bank of Kurundwad, another Maharashtra-based bank, had failed earlier.

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