Government troubling the ICICI-BoR deal
By Vaibhav Aggarwal
May 21, 2010
Print    Email    RSS   

The takeover between ICICI Bank and Bank of Rajasthan (BoR) still has miles to go before reaching accomplishment. According to an official from the industry ministry, a new regulatory hurdle is still left to be cleared.

In most of the cases, mergers in the banking sector needs approval from RBI. But this merger would also require a government approval as the controversy of ICICI being considered as a foreign bank is still persistant.

"The merger needs the approval of the FIPB (Foreign Investment Promotion Board) under Press Note 3," an official of the department of industrial policy and promotion, which is responsible for formulating foreign investment policy said.

The feud over ICICI and HDFC Bank being considered as foreign banks under the new FDI norms is a boiling issue currently.

Now, Press Note 3 of 2009 series says that if a foreign company is to take over a local company then it would need approval from FIPB.

"It does not matter which bank approaches FIPB. One entity can also approach FIPB on behalf of the other," analyst with a consulting firm said.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Consolidation good for creating healthier...
Effect of employment on loan eligibility...
Personal loans in India: Features and...
Managing and emerging out of institutional...
Do rising NPAs reflect an ailing banking...

HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive