Trouble-torn Bank of Rajasthan (BoR) on Tuesday announced that it would merge with India’s largest private sector lender ICICI Bank.
An agreement for amalgamation was reached today between ICICI Bank and BoR, which as per today’s share price is valued at Rs 1,500 crore. BoR shares surged 20 per cent to Rs 99.50.
Bank of Rajasthan said in a notification to the stock exchanges that its controlling shareholders, the Tayal family “have entered into an agreement on May 18, 2010, with the ICICI Bank for proposing an amalgamation of both.”
Incepted in 1943, BoR has a network of over 463 branches and a customer base of over 20 lakh. In the December quarter, the bank’s net profit declined to Rs 44.7 crore as against Rs 49.21 crore in the year ago period while its total income dropped to Rs 3 73.7 crore from Rs 419.8 crore.
ICICI Bank has over 2,000 branches.