The merger that will have retrospective effect from April 1, 1999, has been approved by the board of directors of both the companies. After completion of the formalities, the operations of OSFL will be integrated with the management structure of NUACL.

Briefing mediapersons today, chairman of the Sanmar group, N Sankar said the merger ratio of 1:1 -- one share of NUACL for one share held in OSFL -- reflected the character of the merger as one among equals and of mutual benefit to the shareholders of both entities.

The total net owned funds of the combined entity will be Rs 51 crore with the public deposits at Rs 156 crore. While the institutional borrowing stand at Rs 116 crore, the total assets have been valued at Rs 350 crore with non-performing assets at less than 3 per cent.

Sankar said cash resources to the extentof Rs 17 crore were infused into OSFL to maintain a comfortable liquidity position. Another installment of Rs 8 crore will be injected shortly to service the obligations comfortably.

CMD of NUACL, Rajive Kaul termed the operation ``growth through merger.'' NUACL with strengths in loan syndication, trade finance and non-funded activities will derive synergistic energy.