IDBI to pay Rs 28/shr for United Western Bank

IDBI will make an upfront payment in cash of Rs 28 in respect of every fully paid-up share of United Western Bank.

The current market price of UWB is Rs 21.5 per share, which means IDBI will be paying a premium of  30%.

According to a release issued by RBI, "every savings bank account or current account or any other deposit account including a fixed deposit, cash certificate, monthly deposit, deposit payable at call or short notice or any other deposits by whatever name with UWB, IDBI shall open with itself on the prescribed date a corresponding and similar account in the name of the respective holder(s) thereof crediting thereto full amount including interest to the extent payable under the scheme."

Click here for the draft scheme of amalgamation of United Western Bank with IDBI