Merger of Bank of Rajasthan with Icici Bank

MERGER OF THE BANK OF RAJASTHAN LIMITED WITH ICICI BANK The Bank of Rajasthan Limited (Bank of Rajasthan), a financial organization consolidated inside the importance of Companies Act, 1956 and authorized by Reserve Bank of India (RBI) under the Banking Regulation Act, 1949 was amalgamated with ICICI Bank Limited (ICICI Bank/the Bank) with impact from close of business on August 12, 2010 as far as the Scheme of Amalgamation (the Scheme) endorsed by RBI vide its request DBOD No. PSBD 2599/16. 01. 056/2010-11 dated August 12, 2010 under sub area (4) of segment 44A of the Banking Regulation Act, 1949.The thought for the amalgamation was 25 value portions of ICICI Bank of the presumptive worth of Rs. 10 each completely settled up for each 118 value portions of Rs. 10 every one of Bank of Rajasthan. In like manner, ICICI Bank apportioned 31,323,951 value offers to the investors of Bank of Rajasthan on August 26, 2010 and 2,860,170 value shares, which were prior kept in cessation pending c ommon intrigue, on November 25, 2010. During the year, we gained The Bank of Rajasthan which considerably improved our branch organize and fortified our quality in northern and western India.The merger of Bank of Rajasthan added more than 450 branches to our system. Counting these, our branch arrange has expanded from 1,707 branches at March 31, 2010 to 2,529 branches at March 31, 2011. We additionally expanded our ATM organize from 5,219 ATMs at March 31, 2010 to 6,055 ATMs at March 31, 2011. During the year, the reconciliation of Bank of Rajasthan into the Bank was a significant exercise which was effectively finished. The mix procedure concentrated both on business just as social integration.The individuals and social reconciliation was accomplished through very much arranged correspondence of the Bank's qualities and culture. The Bank contacted all workers of Bank of Rajasthan and tended to their desires and concerns. This was accomplished through correspondence from the top adm inistration of the Bank, open house meetings mutually directed by ranking directors from Bank of Rajasthan and ICICI Bank and one-on-one meetings any place required. Further, to adjust the ranges of abilities of Bank of Rajasthan representatives, exceptional preparing programs were planned and led by the Bank.Pursuant to the merger of the Bank of Rajasthan, we likewise empowered consistent exchanges for the clients of Bank of Rajasthan in a short time allotment and joined the ATM and branch systems and innovation framework. To empower better client care, our branch staff has been furnished with a far reaching and single perspective on client connections. We have likewise upgraded our Interactive Voice Response framework at our call communities to help territorial Indian dialects. Amalgamation of The Bank of RajasthanOn May 23, 2010, the Board of Directors of ICICI Bank and the Board of Directors of The Bank of Rajasthan Limited (Bank of Rajasthan), an old private area bank, at their separate gatherings affirmed an all-stock amalgamation of Bank of Rajasthan with ICICI Bank at an offer trade proportion of 25 portions of ICICI Bank for 118 portions of Bank of Rajasthan. The investors of ICICI Bank and Bank of Rajasthan endorsed the plan of amalgamation at their separate extra-conventional general meetings.RBI affirmed the plan of amalgamation with impact from close of business on August 12, 2010. We have given 31. 3 million offers in August 2010 and 2. 9 million offers in November 2010 to investors of Bank of Rajasthan. The all out resources of Bank of Rajasthan spoke to 4. 0% of absolute resources of ICICI Bank at August 12, 2010. At August 12, 2010, Bank of Rajasthan had all out resources of Rs. 155. 96 billion, stores of Rs. 134. 83 billion, advances of Rs. 65. 28 billion and speculations of Rs. 70. 96 billion. It brought about lost Rs. 1. 02 billion in monetary 2010.The outcomes for financial 2011 incorporate aftereffects of Bank of Rajasthan for the period from August 13, 2010 to March 31, 2011. The benefits and liabilities of Bank of Rajasthan have been accounted at the qualities at which they were showing up in the books of Bank of Rajasthan at August 12, 2010 and arrangements were had for the effect between the book esteems showing up in the books of Bank of Rajasthan and the reasonable incentive as controlled by ICICI Bank. The amalgamation was a piece of our procedure to extend our branch coordinate with the end goal of developing our store base.We accept that the blend of Bank of Rajasthan's branch establishment with our solid capital base would improve the capacity of the joined element to exploit the development openings in the Indian economy. All out resources expanded by 11. 8% from Rs. 3,634. 00 billion at March 31, 2010 to Rs. 4,062. 34 billion at March 31, 2011. All out stores expanded by 11. 7% from Rs. 2,020. 17 billion at March 31, 2010 to Rs. 2,256. 02 billion at March 31, 2011. Current and bank account (CASA) stores expanded by 20. 7% from Rs. 842. 6 billion at March 31, 2010 to Rs. 1,016. 47 billion at March 31, 2011 while term stores expanded hardly from Rs. 1,178. 01 billion at March 31, 2010 to Rs. 1,239. 55 billion at March 31, 2011. The proportion of CASA stores to add up to stores expanded from 41. 7% at March 31, 2010 to 45. 1% at March 31, 2011. All out advances expanded by 19. 4% from Rs. 1,812. 06 billion at March 31, 2010 to Rs. 2,163. 66 billion at March 31, 2011 principally because of an expansion in household corporate advances, abroad corporate credits and advances taken over from Bank of Rajasthan.Net non-performing resources diminished by 37. 0% from Rs. 39. 01 billion at March 31, 2010 to Rs. 24. 58 billion at March 31, 2011 and the net non-performing resource proportion diminished from 1. 9% at March 31, 2010 to 0. 9% at March 31, 2011. We kept on extending our branch organize in India. Our branch organize in India expanded from 1,707 branches and expansion counters at March 31, 2010 to 2,529 branches and augmentation counters at March 31, 2011. We additionally expanded our ATM organize from 5,219 ATMs at March 31, 2010 to 6,104 ATMs at March 31, 2011.These incorporate branches and ATMs of Bank of Rajasthan. The all out capital ampleness proportion of ICICI Bank on an independent premise at March 31, 2011 as per the RBI rules on Basel II was 19. 5% with a level I capital sufficiency proportion of 13. 2% contrasted with an all out capital sufficiency of 19. 4% and level I capital ampleness of 14. 0% at March 31, 2010 Average advances expanded hardly from Rs. 1,915. 39 billion in financial 2010 to Rs. 1,926. 52 billion in monetary 2011 which incorporates propels taken over from Bank of Rajasthan. Retail progresses expanded by 5. % from Rs. 790. 62 billion at March 31, 2010 to Rs. 836. 75 billion at March 31, 2011. In US dollar terms, the net advances of abroad branches expanded by 22. 8% from US$ 10. 1 billion at March 31, 2010 to US$ 12. 4 billion at Ma rch 31, 2011. In rupee terms, the net advances of abroad branches expanded by 22. 1% from Rs. 451. 37 billion at March 31, 2010 to Rs. 550. 97 billion at March 31, 2011. Installments to and arrangements for workers Employee costs expanded by 46. 3% from Rs. 19. 26 billion in financial 2010 to Rs. 28. 17 billion in monetary 2011.Employee costs expanded essentially because of expansion of representatives of Bank of Rajasthan, yearly increment in pay rates and arrangement for installment of execution reward and execution connected maintenance pay during the period and increment in the worker base, including deals administrators, representatives on fixed term agreements and understudies, from 41,068 representatives at March 31, 2010 to 56,969 workers at March 31, 2011 (counting workers of Bank of Rajasthan). Assessment cost The personal duty cost (counting riches charge) expanded by 22. 0% from Rs. 13. 20 billion in financial 2010 to Rs. 16. 10 billion in financial 2011.The powerful exp ense pace of 23. 8% in financial 2011 was lower contrasted with the powerful expense pace of 24. 7% in monetary 2010 essentially because of progress in blend of available benefits with a higher segment of absolved salary in the current financial year and tax breaks from the amalgamation of Bank of Rajasthan. The absolute resources expanded by 11. 8% from Rs. 3,634. 00 billion at March 31, 2010 to Rs. 4,062. 34 billion at March 31, 2011 (counting Rs. 155. 96 billion of Bank of Rajasthan at August 12, 2010), basically because of increment in speculations and advances. Ventures expanded by 11. 4% from Rs. 1,208. 3 billion at March 31, 2010 to Rs. 1,346. 86 billion at March 31, 2011. The net advances expanded by 19. 4% from Rs. 1,812. 06 billion at March 31, 2010 to Rs. 2,163. 66 billion at March 31, 2011. Speculations Total ventures expanded by 11. 4% from Rs. 1,208. 93 billion at March 31, 2010 to Rs. 1,346. 86 billion at March 31, 2011 (counting Rs. 70. 96 billion of Bank of Rajastha n at August 12, 2010), fundamentally because of an expansion in interest in corporate securities and debentures by Rs. 125. 1 billion, RIDF and other related interests in lieu of shortage in coordinated loaning prerequisites by Rs. 49. 0 billion (counting Rs. 21. 34 billion of Bank of Rajasthan at August 12, 2010) and interests in business paper and declaration of stores by Rs. 31. 21 billion. The interest in go through authentications diminished by Rs. 15. 93 billion at March 31, 2011 contrasted with March 31, 2010. At March 31, 2011, we had an extraordinary net venture of Rs. 28. 31 billion in security receipts gave by resource recreation organizations according to offer of non-performing resources contrasted with Rs. 33. 94 billion at March 31, 2010. At March 31, 2011, we had a gross arrangement of supported credit subordinates of Rs. 0. 60 billion and non-subsidized credit subsidiaries of Rs. 28. 17 billion, which incorporates Rs. 0. 22 billion as insurance purchased by us. Adva nces Net advances expanded by 19. 4% from Rs. 1,812. 06 billion at March 31, 2010 to Rs. 2,163. 66 billion at March 31, 2011 fundamentally because of increment in household corporate credits, abroad corporate advances and advances taken over from Bank of Rajasthan adding up to Rs. 65. 28 billion at August 12, 2010. Net re