Small private sector lender Bank of Rajasthan said on Tuesday that its controlling shareholders have agreed to merge with ICICI Bank (ICICIBANK.NS : 889.2 -11.9
), India's No 2 lender.
No terms were immediately available. Bank of Rajasthan, controlled by the Tayal family, has a market value of $296 million.
Shares in Bank of Rajasthan rose 19.95 percent to 99.50 rupees ahead of the announcement in a Mumbai market that ended up 0.24 percent.
Boards of both banks were to meet later in the day to consider the merger, Bank of Rajasthan said in statement to the stock exchange.
The Tayals, who owned about 29 percent of the small bank at the end of December, according to Bombay Stock Exchange (^BSESN : 16875.76 +40.2
) data, have been reported to be negotiating with potential buyers.
In March, the Reserve Bank of India appointed consulting firms to conduct a special audit of the books and accounts of Bank of Rajasthan.
India's markets regulator, the Securities and Exchange Board of India (SEBI), on March 8 issued an interim order restraining the founders and various group entities from accessing the capital markets or from dealing in securities.
Bank of Rajasthan has a network of 463 branches and a customer base of 2 million.
Bank of Rajasthan officials could not be reached for comment while an ICICI Bank spokesman declined comments.
), India's No 2 lender. No terms were immediately available. Bank of Rajasthan, controlled by the Tayal family, has a market value of $296 million.
Shares in Bank of Rajasthan rose 19.95 percent to 99.50 rupees ahead of the announcement in a Mumbai market that ended up 0.24 percent.
Boards of both banks were to meet later in the day to consider the merger, Bank of Rajasthan said in statement to the stock exchange.
The Tayals, who owned about 29 percent of the small bank at the end of December, according to Bombay Stock Exchange (^BSESN : 16875.76 +40.2
) data, have been reported to be negotiating with potential buyers. In March, the Reserve Bank of India appointed consulting firms to conduct a special audit of the books and accounts of Bank of Rajasthan.
India's markets regulator, the Securities and Exchange Board of India (SEBI), on March 8 issued an interim order restraining the founders and various group entities from accessing the capital markets or from dealing in securities.
Bank of Rajasthan has a network of 463 branches and a customer base of 2 million.
Bank of Rajasthan officials could not be reached for comment while an ICICI Bank spokesman declined comments.
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