The board of IDBI Bank has given itsapproval to the merger of Stock Holding Corporation of India with the bank.
“Valuation is yet to be done,” said a senior official of SHCIL. “Further, approval from the Bombay High Court is also required,” he added.
“IDBI shares will be issued to SHCIL shareholders in an all-stock deal after the valuation is worked out by our merchant bankers.
“They will also work out the scheme of amalgamation in the next few days. We expect approvals from the RBI, SEBI, court and the Government to be finalised in the next 4-6 months,” said B. K. Batra, Deputy Managing Director, IDBI Bank. “The merger will augment our branch network by 20 per cent with an addition of 227 branches and employee strength by eight per cent,” he said.
“Our retail client base will increase by nearly eight lakh,” he added.
“We will be able to offer custodial services, document storage and digitisation, and other services of SHCIL. It will also help us better our cross-selling business to the new clients,” said Batra.