ICICI Bank's board of directors has given in-principle approval for the amalgamation of The Bank of Rajasthan with ICICI Bank, subject to due diligence and valuation by an independent valuer jointly appointed by both banks.

The proposal if approved by the boards of both ICICI Bank and Bank of Rajasthan would then be placed before the shareholders of banks for approval and would be submitted to RBI for its consideration.

ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan agreeing to effect the amalgamation of Bank of Rajasthan with ICICI Bank with a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.

The proposed amalgamation is expected to substantially enhance ICICI Bank’s branch network and strengthens its presence in northern and western India. It would combine Bank of Rajasthan’s branch franchise with ICICI Bank’s capital base.