Bank of Rajasthan to merge with ICICI Bank

An agreement for amalgamation was reached between ICICI Bank and BoR, which as per today’s share price is valued at Rs 1,500 crore.

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.”

Promoters Tayal family had recently run into regulatory trouble with Sebi and RBI over its stake holding, which had risen contrary to the impression it conveyed. The family has about 55 per cent stake and it needs to bring it down to 10 per cent to meet RBI guidelines.
The Boards of both the banks met today on the merger. BoR,is one of the oldest private sector banks in India.