Banking regulator, Reserve Bank of India has finally given approval to the ICICI- Bank of Rajasthan merger. Now all 463 branches of BoR will come under the branch network of the largest private sector bank of the country, ICICI Bank.

"All branches of Bank of Rajasthan will function as branches of ICICI Bank with effect from August 13, 2010," the RBI said.

ICICI Bank was waiting for this approval. The merger has already received approval of shareholders.

With this acquisition, the branch network of ICICI Bank will see a 25% rise, taking the count to about 2500 pan India. Also, the bank will gain better access and visibility in the northern and western parts of the country.

"I am happy [with the RBI decision]. The synergies will start from tomorrow and integration will be completed this month," said Pravin Tayal, the promoter of the Bank of Rajasthan.

The merger would be taking the turnover of ICICI Bank to above Rs4,00,000 crore.

This is the third acquisition by ICICI. The first was in 2001 when it acquired Bank of Madura and the second was of the Maharashtra-based Sangli Bank in 2007.