Press Release
PR No.:254/2002November 16,2002
TAKEOVERS DIVISION
In the matter of proposed merger of the Nedungadi Bank Limited (NBL) with Punjab National Bank (PNB)
In view of the press reports regarding the movement of prices of shares of Nedungadi Bank Limited (NBL), it is clarified that in terms of Regulation 3 (1) (j) (ii) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (Regulations) the proposed merger of NBL with Punjab National Bank (PNB) is exempted from the applicability of Regulations 10, 11 & 12 of the Regulations and consequently, there would not any public announcement/open offer for acquisition of shares of NBL by PNB. The draft scheme of amalgamation is available on the website of RBI, www.rbi.org.in. In terms of Clause 7(1) of Chapter V of the said scheme, the entire capital and reserves of NBL shall be treated as provision for bad and doubtful debts and depreciation and other assets of the bank. The said scheme also, inter alia, does not envisage allotment of shares of PNB to the shareholders of NBL.