(a) whether the Nedungadi Bank has been merged with the Punjab National Bank;
(b) if so, the terms and conditions of the merged agreement and since when it has
become effective;
(c) whether the Government have some proposal for merger of such other banks with
Public Sector Banks; and
(d) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) Yes, Sir.
(b) The scheme of amalgamation of Nedungadi Bank Ltd. (NBL) with Punjab National bank (PNB)
came into effect from 1st February 2003. The terms and conditions of scheme inter-alia
include that:—
(i) The business, properties, assets and liabilities of NBL shall stand transferred to PNB;
(ii) All contracts, deeds, bonds, agreements, powers of attorney etc. having effect
immediately before the date of amalgamation, shall be effective and may be acted upon as if
PNB had been a party thereto or as if it had been issued in favour of NBL;
(iii) Any suit, appeal, legal proceedings pending shall not abate, be discontinued or be
prejudicially affected but shall be prosecuted and enforced by or against the transferee bank;
(iv) The books of NBL shall be closed and balanced and balance sheet prepared at the close
of business on the date immediately preceding imposition of moratorium and the balance
sheet shall be got audited and certified;
(v) PNB shall, in consultation with NBL, value the assets and reckon the liabilities
of NBL in the manner prescribed in the Scheme. PNB shall discharge the liabilities of
NBL and make payment to the creditors and depositors in the manner specified in the Scheme.
As regards payment to depositors, Scheme, inter-alia, provides that in respect of every
savings bank account, current account or any other deposit account, including the interest
to the extent payable under the scheme, the transferee bank shall open with itself a
corresponding and similar account and credit the full amount including interest in respect
of each of the accounts;
(vi) All the employees of NBL shall continue in service and be deemed to have been appointed
in PNB at the same remuneration and on the same terms and conditions of service as were
applicable to them before the amalgamation.
(c) No, Sir.
(d) Does not arise.