The Board of Directors of ICICI Bank on Sunday granted approval for the merger o

f Bank of Rajasthan (BoR) with itself on a swap ratio of 1:4.72 shares.

In effect, the board of NYSE listed ICICI Bank at its meeting held this day appr
oved a share exchange ratio range of 25 shares of ICICI Bank for 118 shares of B
ank of Rajasthan, which works out to a simple ratio of 1:4.72 and falls within t
he range recommended by chartered accountant company, Haribhakti & Co. The Taya
l family, however, promoters of BoR had hoped for a ratio of 1:3 shares. However
, the proposed merger is subject to the approval of shareholders of both banks a
s well as the Reserve Bank of India (RBI). The ICICI Bank board considered the r
esults covering advances, investments, deposits, properties and branches and em
ployee-related liabilities, and the valuation report of Haribhakti & Co, prior t
o recommending the above share swap ratio.
The proposed merger seeks to enhance ICICI Bank s branch network already the large
st among Indian private sector banks especially its presence in northern and wes
tern India. It would combine as much as 463 branches of BoR s branch franchise wit
h ICICI Bank s strong capital base, to enhance the ability of the merged entity to
capitalise on the growth opportunities in the Indian economy.
JM Financial Consultants and ICICI Securities were the financial advisers to ICI
CI Bank on the proposed merger, while Amarchand & Mangaldas & Suresh A Shroff &
Co were the legal advisers.
DH News Service

Go to Top

ICICI Bank Ltd, India's largest private sector bank, welcomes all existing custo
mers of Bank of Rajasthan (BoR).The Reserve Bank of India approved the merger of
Bank of Rajasthan with ICICI Bank Ltd, India's largest private sector Bank. All
branches of Bank of Rajasthan will function as branches of ICICI Bank. The boar
ds of both the banks on May 23, 2010 approved the merger for a share exchange ra
tio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.
All customers will be extended seamless services as per existing Bank of Rajasth
an procedures. All existing BoR products will continue with current features and
charges. Customers can continue to transact using their current BoR cheque book
s, ATM cards, lockers etc. The minimum balance requirements and service charges
on all type of accounts will remain unchanged.
Post the system integration customers can benefit from ICICI Bank's enhanced bra
nch network of over 2500 branches and over 5600 ATMs spread across 1400 location
s in the country. The Bank has a presence in 18 international locations. ICICI B
ank's extensive product suite caters to all banking requirements, both corporate
and retail, backed by a world class technology platform.