ICICI Bank eyeing stake in Bank of Rajasthan: Reports
06 May 2010
India's second biggest lender ICICI Bank is in talks for a acquiring a stake in Bank of Rajasthan from the Tayals, who control the small private-sector bank, according to a report in The Economic Times today.
The Tayals who held 29 per cent holding at end-December according to the Bombay Stock Exchange data, are also in talks with other interested parties, the newspaper said, sources it did not name.
The bank's market value is $324 million and ICICI has indicated its willingness to pay more than the stake's market values, the report said.
The reported quoted an unnamed senior banker as saying that there are differences on valuations and talks had not progressed and a deal could be sometime away.
The Tayals have come under the central bank's pressure which appointed consulting firms in March to conduct special audit of the books and accounts of Bank of Rajasthan.
They have begun talks with large private sector banks for merger under the central bank's pressure.
According to analysts a merger with ICICI Bank would mean a lot to the Tayals but only a minor dilution to ICICI. They say given ICICI's market capitalisation of Rs1,00,717 crore and BoR's Rs1,323 crore a merger would mean a small dilution of ICICI.
