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HC approves ICICI Bank's merger ratio

The Bombay high court on Thursday approved the swap ratio for financial services powerhouse ICICI Ltd's merger with ICICI Bank, paving the way for the creation of the country's largest private bank.

"The court approves the merger ratio," Judge D K Deshmukh of the Bombay high court said, while setting aside objections raised by some minority shareholders of ICICI.

The minority shareholders had argued that the ratio of two ICICI shares for each ICICI Bank share was skewed in favour of the bank's shareholders.

ICICI will now have to await central bank approval before the merger takes effect.

In October, the New York Stock Exchange-listed ICICI decided to merge with ICICI Bank, the bank it founded eight years ago, to create India's largest private bank with assets of nearly Rs 1 trillion.

The merged entity will be second only to the state-run State Bank of India, which had assets of Rs 3.16 trillion at the end of March, 2001.

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