Bank of Rajasthan becomes part of ICICI Bank

Effective today the the country's oldest private sector bank, Bank of Rajasthan Ltd, has become part of ICICI bank Ltd. Accordingly, all Bank of Rajasthan branches have started functioning as ICICI Bank branches.

This follows the Reserve Bank of India's (RBI) sanctioning the scheme of amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.

The scheme has come into force from the close of business on 12 August 2010.

On 23 May the boards of both ICICI Bank and Bank of Rajasthan had approved the merger at a share swap 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.

This is ICICI Bank's third acquisition after Bank of Madura in 2000-01 and Sangli Bank in 2006-07.

The acquisition of Bank of Rajasthan will help ICICI strengthen its network in northern as well as western India.

Bank of Rajasthan has a network of 463 branches, with about 60 per cent of them operating in Rajastahan, besides 111 ATMs. ICICI Bank has a network of 2,009 branches and 5,219 ATMs.

Bank of Rajasthan is a listed old Indian private sector bank with its corporate office at Mumbai in Maharashtra and registered office at Udaipur in Rajasthan.

The bank had total assets of Rs17,224 crore, deposits of Rs15,187 crore and advances of Rs7,781 crore as of 31 March 2009. It made a net profit of Rs118 crore in the year ended 31 March 2009 but reported a net loss of Rs10 crore in the nine months ended 31 December 2009.
 
The latest acquisition will help ICICI Bank strengthen its network in northern as well as western India.