Ujwal Bank Ltd. (UBL) and Suraksha Bank Ltd. (SBL) are Scheduled Banks to merge. UBL is strong Private Sector Bank with stable capital adequacy,…

CA Final · Advanced Financial Management · PYQS · January 2026
Ujwal Bank Ltd. (UBL) and Suraksha Bank Ltd. (SBL) are Scheduled Banks to merge. UBL is strong Private Sector Bank with stable capital adequacy, while SBL has negative CRAR due to heavy NPAs. Data of both the Banks is as follows: Particulars UBL SBL Book Value per share (₹) 50 25 Market Price per share (₹) 200 50 CRAR% 12 (-) 2 NPA% 2 12 No. of shares in thousands 50000 20000 Price Earning Ratio (PE Ratio) 20 10 Weights for swap ratio are Book Value per share 20%, Market Price per share 40%, CRAR (%) 20% and balance for NPA%. From the information given above, choose the correct answer to the Question No. 10 to 12:
(A) (A) 1.07
(B) (B) 0.20
(C) (C) 0.86
(D) (D) 1.73

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(B) 0.20

Topics: Mergers, Acquisitions and Corporate Restructuring, Interest Rate Risk Management

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