Bank of Rajasthan to merge with ICICI Bank

ICICI Bank, the country's second largest lender will merge smaller rival Bank of Rajasthan to create a much larger private sector lender with a market capitalisation of over Rs1,00,498 crore ($22 billion).

The board of directors of the troubled Bank of Rajasthan (BoR) today approved a proposal from dominant shareholders of the bank for amalgamation of the bank's 28 per cent promoter holding with ICICI Bank.

The dominant shareholders of the Bank of Rajasthan have entered into an agreement with the ICICI Bank, the country's largest private sector lender, for an amalgamation of both the banks, Bank of Rajasthan announced today.

"The board has given its in-principle approval for the amalgamation of Bank of Rajasthan with ICICI Bank," the bank's managing director & CEO, G Padmanabhan, told reporters.

Bank of Rajasthan said it has received a communication from Sanjay Kumar Tayal, director and a member of the dominant shareholding group, requesting to convene a board meeting urgently.

The board also approved the due diligence of the proposed transaction.