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721 ATMs in India and presence in 18 countries.Maharastra. Head quarter situated in Mumbai. Mortgages.India. MD & CEO of ICICI Bank is Chandra Kochhar . Assets Management. Mainly deals with products likes Investment Banking. y It is the 4th largest bank in India and the largest private sector y y y y bank in India by market capitalization.700+ branches (as on 31 March 2010) and about 4.ICICI Bank Profile y Works as a banking and financial service Organization in India. Retail Banking. Credit Card. The bank also has a network of 1. Commercial Banking. Private Banking.
the have more than 50% stake in BoR. Udaipur. It has 463 branches. MD & CEO of BoR is G. Mainly deals with products like Loans. Savings. Padmanabhan . Head quarter situated in Clock Tower. Rajasthan. Mainly controlled by Tayal Business Group.00 lacs. . It is a Old Private Sector Bank. etc.Bank Of Rajasthan Profile y It was set up at Udaipur in 1943 with an initial capital of y y y y y y Rs. India. Investment vehicles.10.
head office in Balabanovo in the Kagula region. in Maharastra State. and with a branch in Moscow. a Russia bank with about US$4mn in assets. . y 2007: ICICI amalgamated Sangli Bank. which was headquartered in Sangli. y 2005: ICICI acquired Investitsionno-Kreditny Bank (IKB). and which had 158 branches in Maharashtra and another 31 in Karnataka State.HISTORY OF MERGER BY ICICI Bank y 2001: ICICI Bank acquired Bank of Madura.
6% SEBI investigation Tayal actually controlled 55% in the bank . SEBI banned promoters (Tayal Family) of bank from all stock market activities .3 crore in 4th quarter of FY2010 SEBI bans 100 entities related to Bank of Rajasthan Banned several member from Tayal Business Group.Reason for Merger of BoR y y y y y y y y Incurred net loss of 92.2% to 28. SEBI conducted an investigation into shareholding pattern in BoR since 2007 Investigation revealed entities acting in connivance with Tayals to corner shares Bank shown promoter holding dipped from 44. SEBI acted on reference from RBI .
average market capitalization per branch of old private sector banks and relevant precedent transactions y Paid Rs 6.How its going to be happen? y ICICI Bank announced merger with Bank of Rajasthan with it through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3. .000 crore. This is based on an internal analysis of the strategic value of the proposed amalgamation. y Each 118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI.5 crore per branch and that is the average market cap for old private sector banks.
1% .COMPARISION OF BoR & ICICI Bank Basis CASA Deposits Business per month Return on average assets Net non-performing assets BoR Rs 4163crores Rs 47crores 0.05% ICICI BANK Rs 21000crores Rs 304crores 1% 2.7% 1.
and especially strengthen its presence in northern and western India. . already the largest among Indian private sector banks. is that it would have taken the bank three years to build the kind of low-cost current account and savings account (CASA) relationship. y Adds 25% to their branch network. y The rationale for the merger.Benefit of Merger for ICICI Bank y The proposed amalgamation would substantially enhance ICICI Bank·s branch network. it gets to build upon now with the latest move. ICICI Bank has had its sights set firmly on expanding its share of CASA deposits. according to the ICICI Bank management.
ii) The main issue of Indian Banks Association with bank staff unions is negotiation of their wages. iv)Retrenchment of existing employee v) No cultural fit whatsoever between the working of our bank and ICICI Bank .Resistance from Employee y Over 4200 employees of Bank of Rajasthan showed protest against the merger. y Issues: i)if a merger is essential it should be with a public sector bank. iii) BoR employees' wages are governed by the industry wage packages unlike other private sector banks in the industry.
y After the protest by employees of BoR.ICICI BANK APPROACH TOWARDS RESISTANCE. ICICI Bank management clear that their will be no retrenchment of employee. y Salaries and service condition will be dicided according to bipartite settlement Indian Banks' Association and the United Forum of Bank Unions. .
.Conclusion y Merger of BoR an old private sector bank with India's 2nd largest private sector bank will definitely help both of this parties as ICICI Bank can extend it activities as it total number branches will go up by 25% and BoR will also get new direction as it already witness the share price of BoR in BSE is almost doubled after the announcement of the merger.
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