Bank of Rajasthan cancels EGM on merger with ICICI Bank

Bank of Rajasthan Ltd today cancelled a scheduled extra-ordinary general meeting (EGM) of shareholders on its proposed merger with ICICI Bank Ltd, following a restraint order passed by a Kolkata court.

Bank of Rajasthan had on 23 May 2010, convened an EGM on 21 June for passing resolutions in connection with the amalgamation of the bank with ICICI Bank Ltd, in terms of section 44A of the Banking Regulation Act, 1949.

Bank of Rajasthan said it has now received a copy of letter dated 21 June 2010 from one Ishwar Chandra Sharma, advocate, Howrah, informing the bank about the restraint order passed by the City Civil Court, at Kolkata, restraining the bank from holding the EGM on 21 June 2010.

Bank of Rajasthan said its managing director received the order at around 12.50 pm, who after consulting the bank's solicitor, Fox Mandal, Kolkata, decided not to hold the meeting.

The company secretary read out the contents of the letter from the advocate to the shareholders at the venue of the meeting and got the letter from the advocate pasted at the venue of the meeting. Thereafter the managing director and all other officers of the bank left the venue of the EGM.

High drama followed and investors, numbering about 1,000, started raising slogans. They sought the original court order, which the management said it did not possess.