UTI Bank has finally decided to re-look at the merger ratio with Global Trust Bank. With reference to news item appearing on a leading financial daily titled “Independent look at UTI-GTB likely”, UTI Bank in a communication to the BSE has stated that the aforesaid news article is substantially correct. The Bank has further added that it has asked for a second look at the valuation in relation to the proposed merger of the two private banks.
Global Trust Bank has been at the centre of controversy in the ongoing stock market crisis. Its exposure to the stock market has been reported as quite high. A leading broker mired in the payment crisis is also said to be holding a chunk of the bank’s equity. The stock has been tanking every day on the bourses in the last couple of weeks. Even UTI Bank stock has been beaten down because of this controversy.
It is news such as this that has prompted UTI Bank to investigate the matter further and re-evaluate its merger ratio and possibly even the merger itself. Earlier, the UTI Bank-Global Trust Bank merger ratio was fixed at 9:4 (i.e. 9 shares of UTI Bank for every 4 shares of Global Trust Bank).
Axis Bank declared the results for the third quarter of the financial year ended March 2017 (3QFY17). The bank has reported 4.1% YoY growth in net interest income while net profits declined 73.4% YoY in 3QFY17.
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