ICICI Bank to absorb Bank of Madura

By Our Special Correspondent

MUMBAI, DEC. 8. In yet another merger of banks in the private sector, the Chennai-based Bank of Madura Ltd. is to merge with ICICI Bank Ltd.

Last year, leading private sector bank HDFC Bank acquired Times Bank starting the trend in consolidation in the bank sector.

The board of directors of ICICI Bank will, at its meeting convened on December 11, consider the merger of Bank of Madura with ICICI Bank. The scheme of merger, if approved by boards of both banks, will be subject to approval of the Reserve Bank of India and such other approvals as may be required.

Bank of Madura is a profitable, well capitalised, private sector commercial bank operating for the last 57 years. The bank has an extensive network of 263 branches, with a significant presence in the southern States. The bank has total assets of Rs. 3,988 crores and deposits of Rs. 3,395 crores as on September 30, 2000. The bank had a capital adequacy ratio of 15.8 per cent as on March 31, 2000. The bank's equity shares are listed on the stock exchanges at Mumbai and Chennai and NSE.

PTI reports:

The Chairman of Bank of Madura, Mr. K. M. Thiagrajan, holds about 32 per cent stake in the bank, while Kotak Mahindra holds 12 per cent stake.

Shares of Bank of Madura, which were quoting at Rs. 78 on the BSE in the first week of November, shot up to Rs. 112.90 on December 6 and they closed at Rs. 131.60 today. In NSE, the bank shares closed at Rs. 132.25 (Rs. 122.45).

ICICI Bank is a leading Indian private sector commercial bank promoted by ICICI. The bank has assets of Rs. 12,063 crores and deposits of Rs. 9,728 crores as on September 30, 2000. Its capital adequacy ratio stood at 17.59 per cent as on September 30. The branch net work including extension counters at present covers 106 locations across India. ICICI Bank is India's largest ATM provider with 366 ATMs. The equity shares are listed on the stock exchanges at Mumbai, Calcutta, Delhi, Chennai, Vadadora and NSE. Its ADS is listed on the New York Exchange.

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Section  : Business
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