ICICI, ICICI Bank merger decision today

MUMBAI, OCT. 24. As a step towards universal banking, the boards of ICICI and ICICI Bank will meet tomorrow to consider the merger proposal.

The respective boards will consider a proposal for the merger of ICICI and two of its wholly-owned subsidiaries - ICICI Personal Financial Services and ICICI Capital Services with ICICI Bank, the financial power house said in a release here today.

The share exchange ratio based on the recommendations to be made by J M Morgan Stanley, the investment banker of ICICI, and Deloitte, Haskins & Sells, the firm appointed jointly by the financial institution and the bank, will also be taken into consideration.

The proposal will be submitted to the Reserve Bank of India for its consideration and approval after being accepted by the boards, it said.

The boards of ICICI and ICICI Bank will also consider the financial results for half year ended September 30, 2001.

As on June 30, ICICI had total assets of Rs. 74,751 crores and ICICI Bank Rs. 20,419 crores. The bank has a network of 396 branches and 601 ATMs.

ICICI Personal Financial Services is engaged in the distribution of various retail credit products and other services offered by the FI and the bank while ICICI Capital Services provides front- office services to retail and semi- retail investors of ICICI.

The RBI in its mid-term monetary and credit policy has welcomed interest shown towards universal banking by some FIs and said it would take a flexible view on each application.

The apex bank would pay particular attention to the primary need to ensure safety of public deposits and to promote the continued stability of the financial system as a whole and of the banking system in particular, the policy said.

The scrips of ICICI and ICICI Bank closed higher today by about Rs. 3.

- PTI

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