MEREGER BETWEEN ICICI BANK

& BANK OF RAJASTHAN

DATES: 1955  DATE: 1943
1972 FOUNDER
1994 banking services, at
2000 the door step of
2002 customers

FOUNDER:
ICICI Bank is India's
second-largest bank
What is merger and acquisitions ?

REASONS BEHIND MERGERS :

 INEFFICIENT MANAGEMENT

 SYNERGY

 ACQUIRING NEW TECHNOLOGY

 GREATER MARKET SHARE AND MARKET VALUE

 IMPROVES SHARE HOLDER’S VALUE

Reasons behind Merger
Largest bank in the Private sector industry.

Commitment to getting closer to their customer.

Cheaper deal- paid 6.5 crore per branch.

CASA deposits.

Quality of advances, investments, deposits, properties

etc.
Reasons behind Merger
Merger with Bank of Rajasthan (BoR) is a win-win
situation for all stakeholders

ICICI Bank's branch network will expand by 25%

Market position will increase.

 Pre-Merger condition of
ICICI Bank is the largest private sector bank in
India.

ICICI offers lending and deposit services to

small business and individuals.

Other offerings include online banking,

asset management and insurance.
Pre-Merger condition of Bank Of
Rajasthan
 Conflict with SEBI
 Profit declined
 Growing Network
 Net loss of Rs. 0.10 billion in the nine months
ended December 31, 2009.
Positive Impact on ICICI Bank
ICICI Bank's branch network would go
up to 2,463
With this takeover ICICI will cross Rs 4
lac crore .
With a market capital dilution of just
three per cent, our branch network will
increase by 25 per cent.
Negative Impact on ICICI Bank
 Risks arising from BoR's non-performing
loans and that BoR is trading at expensive
valuations
 Shares declined by 7.24 per cent to close at Rs
825 on the BSE
Based on the swap ratio the valuation is
expensive .
According to the share swap ratio, ICICI
Bank has paid around Rs 6.5 crore per branch.
Positive Impact on Bank of Rajasthan
BoR shares on opening itself hit the 20 per cent
upper circuit at Rs 119.4, on a day when the Sensex
declined by 467 points.

 Employees of BoR will be protected by ICICI

BANK

Market share will increase for BoR by 20%

Negative Impact on Bank of Rajasthan

Salary of employees of BoR will be affected

Under foreign bank

Unions are not satisfied

CONCLUSION