RBI approves ICICI-ICICI Bank merger

Mumbai: ICICI Bank Ltd, which was granted approval by the Reserve Bank of India (RBI) on 26 April 2002 for the merger of ICICI Ltd with it, will have to lend an additional 10 per cent to the priority sector, over and above the mandatory 40 per cent of the total advances applicable to other banks.

This additional 10 per cent on incremental advances will apply until such time the aggregate priority sector advances (including that of ICICI that were not subject to mandatory norms) reaches 40 per cent.

The merger will be effective from 30 March 2002 as approved by the high courts of Mumbai and Gujarat. According to the RBI, the bank will have to comply with both CRR and SLR requirements. Currently, the CRR is 5.5 per cent and the SLR is 25 per cent.

The RBI has also approved the merger of two of ICICIs subsidiaries ICICI Personal Financial Services Ltd and ICICI Capital Services Ltd with ICICI Bank, said an ICICI Bank press release.