BANKING AFFAIRS

Detailed explanation-1: -In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.

Detailed explanation-2: -April 26, 2002 The Reserve Bank of India (RBI) today approved the merger of ICICI Limited (NYSE: IC) and two of its wholly-owned subsidiaries, ICICI Personal Financial Services Limited (ICICI PFS) and ICICI Capital Services Limited (ICICI Capital), with ICICI Bank Limited (NYSE: IBN).

Detailed explanation-3: –RBI approves the amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.-First private sector Bank to inaugurate its 2000 Branch.

Detailed explanation-4: -ICICI, ICICI Bank Merger. The major objective behind the merger between ICICI and ICICI Bank was to get synergy in the form of lower cost of funds. The merger makes the bank, second largest in India only after the State Bank of India.

Detailed explanation-5: -with ICICI, ICICI Bank became a wholly-owned subsidiary of ICICI. The RBI imposed a condition that ICICI reduces its shareholding in ICICI Bank in stages, first to not more than 75.0 per cent of its equity shares capital and ultimately to not more than 40.0 per cent of its equity share capital.