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For UTI Bank, there was the additional regulatory pressure to bring down its promoters' stake to below 40 percent in keeping with licensing conditions.
On the merged bank
AK: The new entity will effectively combine the strengths and complementary features of the two banks. It will be strongly capitalised with a networth that will be in excess of Rs 1,000 crore by end-March 2001.
On synergies
AK: The two banks have lot of similarities. They are roughly of the same size, age and have retail presence. Both have a strong technology base with similar technology platforms. Both banks also have the advantages of new private sector banks:- lean staff, automated and non-unionised work environment and connectivity...
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