United Western Bank (UWB) has failed to maintain Reserve bank of India norms and regulations and RBI had imposed a moratorium on last Saturday on it’s operations mentioning mismanagement and high bad loans ratio running at 5.66 per cent.



Now, six banks are ready to make bid for UWB. ICICI Bank and the boards of Andhra Bank, Allahabad Bank, Federal Bank, Standard Chartered Bank and Canara Bank have given green signals to take over the bank.



According to a statement released by ICICI, the established network will be helpful to grow its rural, small, and medium enterprise banking operations.



This is good news for the depositors but what will happen to the shareholders of the bank. RBI has given green signal to different banking mergers earlier to save depositors. The RBI had merged Global Trust Bank with Oriental Bank of Commerce and Nedungadi Bank with Punjab National Bank.



Matter of the fact is shareholders often get nothing because the net worth of the merged banks was negative. The shareholders got nothing after the merger of Global Trust Bank (GTB) and Nedungadi Bank case with public sector banks.



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