Bank of Rajasthan merges with ICICI Bank
Bank of Rajasthan, one of the oldest private sector banks in the country has announced on Tuesday (May 18), that it would merge with ICICI Bank, which is one of the largest private sector banks of India.
THE PROPOSED merger with Bank of Rajasthan would substantially enhance ICICI Bank's branch network, which is already the largest among Indian private sector banks and especially strengthen its presence in northern and western India.
Bank of Rajasthan, one of the oldest private sector banks in the country announced on Tuesday (May 18), that it would merge with ICICI Bank, which is one of the largest private sector banks of India.
ICICI Bank agreed to give in-principle approval for merger of Bank of Rajasthan which is subject to due diligence and valuation by an independent valuer jointly appointed by both banks.
Bank of Rajasthan with its corporate office in Mumbai and registered office at Udaipur in Rajasthan had 463 branches and 111 ATMs with total assets of Rs 17,224 crore, deposits of Rs 15,187 crore and advances of Rs 7,781 crore. Bank of Rajasthan had made a net profit of Rs 118 crore in the year ended March 31, 2009 and a net loss of Rs 10 crore in the nine months ended December 31, 2009.
ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan agreeing to effect with a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.
After its board meeting the ICICI Bank stated that, “The board will consider the due diligence report and the valuation report at a subsequent meeting. The proposal if approved by the boards of ICICI Bank and Bank of Rajasthan would then be placed before the shareholders of both banks for approval and would be submitted to the Reserve Bank of India (RBI) for its consideration.”
The ICICI Bank board will meet on May 23, to take further decision on the proposed merger with Bank of Rajasthan.
ICICI Bank agreed to give in-principle approval for merger of Bank of Rajasthan which is subject to due diligence and valuation by an independent valuer jointly appointed by both banks.
Bank of Rajasthan with its corporate office in Mumbai and registered office at Udaipur in Rajasthan had 463 branches and 111 ATMs with total assets of Rs 17,224 crore, deposits of Rs 15,187 crore and advances of Rs 7,781 crore. Bank of Rajasthan had made a net profit of Rs 118 crore in the year ended March 31, 2009 and a net loss of Rs 10 crore in the nine months ended December 31, 2009.
ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan agreeing to effect with a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.
After its board meeting the ICICI Bank stated that, “The board will consider the due diligence report and the valuation report at a subsequent meeting. The proposal if approved by the boards of ICICI Bank and Bank of Rajasthan would then be placed before the shareholders of both banks for approval and would be submitted to the Reserve Bank of India (RBI) for its consideration.”
The ICICI Bank board will meet on May 23, to take further decision on the proposed merger with Bank of Rajasthan.
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