ICICI mulls merger with ICICI Bank
29 Sep 2001
Mumbai: ICICI is considering a reverse merger with its banking arm, ICICI Bank, a step that will convert it into a universal bank. The required board resolution for this will be considered at ICICIs board meeting, which will be held on 25 October. After the board resolution is passed, ICICI will be approaching the RBI for the necessary clearance.
ICICI had approached the RBI with the reverse merger proposal last October, but the RBI was not willing to clear the proposal at that stage. However, with the finance ministry now having asked all financial institutions to consider converting themselves into universal banks, ICICIs proposal is likely to come through successfully.
After converting it into a universal bank ICICI will have to adhere to statutory liquidity ratio (SLR), cash reserve ratio (CRR) and priority sector stipulations on its existing assets and liabilities. This is proposed to be done gradually and in a phased manner over a period of seven years.
