Stock Holding Corp to merge with IDBI Bank

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Mumbai: The board of IDBI Bank has cleared a proposal to merge Stock Holding Corporation of India (SHCIL) with the bank through a noncash, share-swap deal. SHCIL was originally a custodial services company in the predemat era and now is a diversified company that provides custodial and depository services and is also a distributor.
In a statement issued here, IDBI Bank said that merchant bankers, chartered accountants, and valuers are being appointed to undertake due diligence and valuation of SHCIL for arriving at the swap ratio for the merger. “The entire process of merger is expected to be completed by March 31, 2013,” the statement said.
SHCIL operates through a wide network of 227 branches/ offices with around 1,300 employees. IDBI Bank hopes to convert the 227 offices of SHCIL into bank branches for which it would require clearance from RBI, an official said.
IDBI Bank currently has a network of 998 branches and 1,592 ATMs. The bank had a balance sheet size of Rs 2,63,535 crore and total business of Rs 3,46,457 crore as on September 30, 2012. For the quarter ended September 30, 2012, the bank recorded a net profit of Rs 484 Crore. SHCIL, which is an unlisted company, reported a net profit of Rs 36 crore for FY12.
Although IDBI is one of the promoters of SHCIL, it is not the largest shareholder and owns a little below 19% stake in the company. The largest stakeholder in the company is IFCI, which increased its stake to 33% after acquiring shares from ICICI Bank some years ago. Other large shareholders are LIC and GIC who hold 14% and 17%, respectively.
IDBI Bank cuts home loan, deposit rates
Mumbai: IDBI Bank on Wednesday slashed interest on home loans by 0.25% and deposit rates in select brackets by up to 0.50%. In the case of home loans, those up to Rs 75 lakh will be available at par with its base rate at 10.50%, while those above Rs 75 lakh will have 0.25% more in interest over the base rate. AGENCIES