The proposed merger of Andhra Bank with Union Bank of India (UBI) on Friday received a crucial approval from the board of directors of the former.
A regulatory filing by the bank said the board of directors considered and accorded its in-principle approval for the amalgamation of Andhra Bank and Corporation Bank with Union Bank of lndia as the anchor bank. The approval of the board, subject to statutory/regulatory approvals, came close on the heels of a protest by a union of Andhra Bank employees against the merger.
As a last-ditch attempt, the employees had demanded that the over nine-decade-old Andhra Banks identity be retained by making it the anchor bank.
The board of Corporation Bank is scheduled to meet on September 16 to consider its amalgamation with Union Bank of India.
Meanwhile, Care Ratings on Friday placed the credit rating of certain debt instruments of both Andhra Bank and Corporation Bank under credit watch with developing implications.
The rating action is based on the proposed amalgamation, Andhra Bank and Corporation Bank said in separate filings with the exchange.