Stock Holding Corporation of India (SHCIL) is all set to merger with the public sector bank IDBI Bank. The final approval from the board of directors of the Mumbai based bank has been received. Talking on the matter, a top level executive of SHCIL said, "Valuation is yet to be done. Further, approval from the Bombay High Court is also required."
The official further added, "IDBI shares will be issued to SHCIL shareholders in an all-stock deal after the valuation is worked out by our merchant bankers."
It is reported that the guidelines of amalgamation will be worked out in the coming days. The bank expects approval from important regulatory authorities like RBI, Government, Court and SEBI within 4 to 6 months. On the matter, the Deputy Managing Director of IDBI Bank, Mr. B. K. Batra said, "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 further added that after the merger, it is expected that the retail customer base of the bank will increase by about 8 lakh. He also said that the merger will enable the bank to provide custodial services to its customers, apart from storing documents, digitization and other services of SHCIL.