IDBI Bank discusses RBI scheme on UWB

Board of directors of Industrial Development Bank of India (IDBI Bank) on Thursday discussed the Reserve Bank of India's draft scheme for amalgamating United Western Bank (UWB) with IDBI Bank.

IDBI Bank said it would send its reply on the scheme to RBI which has set September 27 as deadline for IDBI Bank and UWB to put up their response.

With this purpose, UWB board is slated for a meeting on Friday to arrive at a conclusion on the RBI scheme. The board had met last week and authorised a a board committee to seek clarification on taxation and accounting from the RBI.

It is, however, not known whether UWB has received clarifications from the banking regulator. The RBI on September 2 had placed UWB under moratorium as it found its financials deteriorated and subsequently announced the amalgamation scheme.

According to the scheme, IDBI Bank should pay upfront Rs 28 per share to the shareholders of UWB.

Three UWB depositors have already filed a petition in the Bombay High Court, challenging the RBI's moratorium order.

In response to it, the high court has asked the RBI to file its response on September 27, the same date set by the RBI for IDBI Bank and UWB to submit their views on the scheme.