PHOTO: PAUL NORONHA

COMING TOGETHER: The regional office of Sangli Bank in Mumbai. The bank is proposed to be taken over by ICICI Bank.

MUMBAI: The boards of directors of ICICI Bank and Sangli Bank Limited at their respective meetings held here on Saturday approved an all-stock amalgamation of Sangli Bank with ICICI Bank.

Deloitte Haskins & Sells, the independent valuer appointed jointly by ICICI Bank and Sangli Bank, has recommended a share exchange ratio of 100 shares of ICICI Bank for 925 shares of Sangli Bank. The proposed amalgamation would result in issuance of an additional 3.45 million shares of ICICI Bank, equivalent to about 0.4 per cent of its existing issued equity share capital.

Awaits RBI nod

"The proposed amalgamation is expected to be beneficial to the shareholders of both entities,'' ICICI Bank stated in a press release. The amalgamation is subject to approval of the shareholders of ICICI Bank and Sangli Bank and the Reserve Bank of India (RBI) and such other approvals as may be required, the release added.

ICICI Bank will seek to leverage Sangli Bank's network of over 190 branches and the existing customer and employee base across urban and rural centres in the rollout of its rural and small enterprise banking operations, which are key focus areas for the bank.

The amalgamation would supplement ICICI Bank's urban distribution network. It would enable the shareholders of Sangli Bank to participate in the growth of ICICI Bank's strong domestic and international franchise. "The amalgamation will also provide new opportunities to Sangli Bank's employees, and give its customers access to the ICICI Bank's multi-channel network and a wide range of products and services.''

Sangli Bank is an unlisted private bank headquartered at Sangli in Maharashtra. As on March 31, 2006, Sangli Bank had deposits of Rs. 2,004 crore, advances of Rs. 888 crore, net NPA (non-performing assets) ratio of 2.3 per cent and capital adequacy of 1.6 per cent. Its loss at the end of 2005-06 amounted to Rs. 29 crore.

It has 198 branches and extension counters, including 158 branches in Maharashtra and 31 branches in Karnataka.

About 50 per cent of the total branches are located in rural and semi-urban areas and 50 per cent in metropolitan and urban centres. The bank has about 1,850 employees. ICICI Bank is the second largest bank in India and the biggest in terms of market capitalisation.

As on September 30, 2006, ICICI Bank had total assets of Rs. 282,373 crore. In the six months ended September 30, 2006, it made a net profit of Rs. 1,375 crore.

It had 632 branches and extension counters and 2,336 ATMs as on that date, and is in the process of setting up additional branches and ATMs pursuant to authorisations granted by the RBI. It has about 31,500 employees.

ICICI Bank offers a wide range of financial products and services directly and through subsidiaries in the areas of life and general insurance, asset management and investment banking.

Its shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited and its American Depositary Shares are listed on the New York Stock Exchange.

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