New Delhi, June 08: In a bid to encourage mergers in the banking industry, the RBI is chalking out a framework that will also deal with swap ratios and promoters stake. "Reserve Bank is examining formulation of a framework for voluntary and other merger of banks," official sources said here on Sunday.
The central bank had constituted an inter-departmental group to prepare a pilot policy statement on takeovers, mergers and transfer of shares.
The move was initiated after the failed merger between UTI Bank and Global Trust Bank. A number of public sector banks, including Canara Bank, Andhra Bank and Vijaya Bank, have said they are open about mergers and acquisitions.
It is to be noted that Joint Parliamentary Committee, which had investigated the stock scam of 2001, observed that the role of RBI is limited in regard to swap ratio. Bureau Report