United Bank Surges 7% on Merger Buzz With IDBI Bank
United Bank of India (UBI) shares surged nearly 7 per cent to Rs 52.20 on Monday on reports that the government has asked UBI and IDBI Bank to prepare a merger plan.
United Bank of India has been struggling with high bad debt, which has eaten into its capital base. As of March 31, 2014, the Kolkata-based lender's gross non- performing assets (NPA) stood at Rs 7,118 crore, or 10.47 per cent of its total assets. As per Basel III norms, its capital adequacy ratio (the ratio of bank's capital to its risk) stood at 9.81 per cent as of March 31, 2014, which is one of the lowest in the industry.
Reserve Bank had earlier barred the bank from lending more than Rs 10 crore to any single borrower as its capital adequacy ratio fell to 9 per cent late last year. However, the restriction was subsequently removed.
If UBI merges with IDBI Bank, then it will help the Kolkata-based lender get a capital boost.
Recently, UBI had planned to raise Rs 300 crore by selling 8.45 crore shares on a preferential basis to LIC at a price of Rs. 35.50 per share which is awaiting government's approval.
As of 10.32 a.m., shares in UBI traded 6.65 per cent higher at Rs 52.15 compared to 0.24 per cent loss in Nifty.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
