An internal estimate at ICICI has pegged the stamp cost duty for the merger of the financial institution with ICICI Bank at Rs 700 crore. This was indicated at the presentation made to the Reserve Bank of India on October 5.
Since the stamp duty is pegged at .7 per cent in Maharashtra, it is presumed that the merged entity will have an asset base of Rs 1,00,000 crore. At present, the combined assets of the financial institution and the bank is around Rs 70,000 crore. Since the bank will be required to deploy 40 per cent of its assets in priority sector lendings, ICICI will need to create fresh assets to meet the stipulations.
Since both ICICI and the ICICI Bank are listed companies, they will require shareholders
