Why did ICICI Bank merger with Bank of Rajasthan

Hey dear can you give me the reason of merger of ICICI Bank with Bank of Rajasthan as I am preparing for the interview exam of ICICI so I can be asked from in the exam.

[Shaleen]

Bank of Rajasthan (BoR) merged with ICICI Bank, the country’s largest private sector lender. Under the deal, ICICI Bank gave 25 shares for 118 shares (1:4.72) of BoR.

Bank of Rajasthan

The Bank of Rajasthan Ltd was a private sector bank of India which merged with ICICI Bank in 2010.

It was set up at Udaipur in 1943 with an initial capital of Rs.10.00 lacs.

An eminent Industrialist Late Seth Shri Govind Ram Seksaria was the founder chairman.

Merger with ICICI Bank

RBI was critical of BOR's promoters not reducing their holdings in the company.

BOR has been merged with ICICI Bank.

ICICI paid Rs.30 billion for it.

Each 118 shares of BOR will be converted into 25 shares of ICICI Bank.

Reason for merge

The move to merge BoR with ICICI Bank comes in the wake of regulatory pressure mounted on the Tayals, who according to Sebi, hold nearly 55 per cent stake in the bank.

At the end of 2009, the promoters held a 28.6 per cent stake in the bank, according to stock exchange data.

Nearly 100 entities related to the Tayals were barred from dealing in securities.

ICICI BANK’S MERGER RECORD

1997: Takeover of ITC Classic Finance

1998: Takeover of Anagram Finance

2000: Merger with Bank of Madura

2002: ICICI and ICICI Bank merge

2005: Acquires Russia’s IvestitsionnoKreditny Bank

2007: Amalgamation of Sangli Bank