Mumbai, Tayal Family decided to merge up Bank of Rajasthan with ICICI bank after facing tough time by the regulators.
Tayal family are the controllers of the Bank of Rajasthan. They declared on Tuesday about this merger with ICICI Bank.
Board of directors will meet again on 23rd May. ICICI bank says they network will go stronger with this deal. Board will follow up with the directors on the valuation report and diligence report on 23rd meeting and if everything goes fine, means the proposal if got passed by ICICI bank then BOR will place this proposal among the share holders and the of both banks for approval and then later on submitted to RBI (Reserve Bank of India) for consideration
Bank of Rajasthan is a listed bank with its corporate office in Mumbai and registered office at Udaipur in Rajasthan. As on March 31, 2009, Bank of Rajasthan had 463 branches and 111 ATMs, total assets of Rs.17,224 crore, deposits of Rs.15,187 crore and advances of Rs.7,781 crore. It 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 further stated that it has entered into an agreement with certain shareholders of Bank of Rajasthan agreeing to effect the amalgamation of Bank of Rajasthan with ICICI Bank with a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.