New Delhi, May 23 (IANS) In a bid to consolidate its position as India’s largest private lender, the board of ICICI Bank Sunday approved the merger of the Bank of Rajasthan with itself in a swap deal valued at Rs.3,000 crore ($650 million) without any cash outgo.
The board approved a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan. This works out to one ICICI Bank share for every 4.72 shares of Bank of Rajasthan shares, and falls within the range suggested by consultants Haribhakti and Company.
‘The proposed amalgamation would substantially enhance ICICI Bank’s branch network, already the largest among Indian private sector banks, and especially strengthen its presence in northern and western India,’ the bank said in a statement.
‘The proposed amalgamation is subject to the approval of shareholders of both banks and Reserve Bank of India.’
ICICI Bank is a widely held financial power house, while majority shares of the Bank of Rajasthan — which was set up 66 years ago in Udaipur — are held by its promoters, the Tayal family.