PRESENTED BY-

MEENAL JAIN
NIDHI NAGORI
 ICICI Bank is the India’s second largest bank with asset of
Rs.3634 billion.

 Available in 19 countries.

 The bank has a network of 2528 branches and about 6000

ATM’S. ICICI Bank offers the wide range of banking and
financial services to corporate and retail consumers.

 In 1990’s the ICICI institution started diversifying its

operations,& end up at the wholly owned subsidiary called
ICICI Bank.

 The bank was established in 1994 & became the first bank listed
on NYSE [New York Stock Exchange].
 The bank of Rajasthan was established as joint
stock bank by Mansingka brothers at Udaipur on
8th may,1943.
 The founder chairman of Bank of Rajasthan was an
industrialist Seth Shri Govind Ram Sekasria who
started the bank with initial investment of Rs.10
lac.
 The bank served The Government of Rajasthan as
Scheduled bank for more than 14 years starting
from 1948.
 Bank of Rajasthan had 463 branches and 111
ATM’S & total assets of Rs.172.24 billion .
 The proposed deal would substantially
enhance ICICI Banks branch network, already
the largest among Indian private sector banks.
 It would combine Bank of Rajasthan’s branch
franchise with ICICI Bank’s strong capital base.
 ICICI Bank is facing stiff competition from
HDFC Bank & also resurging Axis Bank .To
remain as the top private player, it needs to
grow bigger and what better way to grow than
the path of acquisition.
 The BOR is the building block but it gives
synergies in the form of a larger customer base.
It gives the ability to offer other products to
customer base such as different loan products
from ICICI Bank & other products.

 It offers a strategic fit, as it adds to our network

in north & western India. It saves us about 3
years time to market. In the normal course, it
takes about a year to setup 500 branches & then
3 years for the branches to come up to the kind
of deposit levels.
 ICICI Bank has valued BOR at a whopping
3000cr which is much more than its market
capitalization. It values the acquired bank at 2.9
times the book value in comparison to 1.89
times.

 BOR’s profit has increased over the years . But

still ,it has a low EPS and net profit margin.
 BOR, though being a private bank , has been
managed like a public sector bank, where the
jobs were safe & the productivity per employee
was low.

 A penalty of Rs.25 lakhs was imposed on them

for violating RBI norms of illegal acquisition of
immovable property, etc.