Mumbai: The Reserve Bank of India on Friday approved Bank of Rajasthan Ltd’s merger with ICICI Bank Ltd, India’s largest private sector lender. “All branches of Bank of Rajasthan will function as branches of ICICI Bank with effect from 13 August,’’ said an RBI statement.
The boards of both the banks on 23 May had approved the merger for a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan. This translated into one ICICI Bank share for every 4.72 Bank of Rajasthan shares.
The 4500 Bank of Rajasthan employees have been protesting the merger. They have filed writ petitions against it in Rajasthan High Court.
G. Padmanabhan, bank’s managing director and chief executive officer said, â€œWe have around 4,500 employees of which some have individually opted for voluntary retirement. I would refrain from quoting any number as more could opt for it in the coming days.’’
This will be ICICI Bank’s third acquisition after Bank of Madura in 2000-01 and Sangli Bank in 2006-07. The first acquisition helped ICICI Bank step up its presence in the south and the second in the west.
The latest acquisition will strengthen its network in northern as well as western India. Bank of Rajasthan has a network of 463 branches and 111 ATMs. About 60% of its branches are in Rajasthan. ICICI Bank has a network of 2,009 branches and 5,219 ATMs.