S&P: Industrial Development Bank of India unchanged

Standard & Poor's said its ratings and outlook on Industrial Development Bank of India Ltd. (BB+/positive/B), a public sector bank, are not affected by the Indian central bank, Reserve Bank of India, clearing a merger proposal between United Western Bank Ltd.

The agency noted that Reserve Bank of India announced a moratorium on United Western Bank on Sept. 2 and suspended its operations, adding that the merger proposal requires Industrial Development to pay Indian rupee 28 for each United Western share, amounting to a total of Re1.50 billion and to assume the assets and liabilities of United Western according to the conditions in the proposal.

The Re1.50 billion purchase consideration will have a negligible impact on the bank's reported shareholders' funds of Re66.59 billion as at March 31, the agency added.

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