CPI deplores ICICI's move to take over Sangli Bank

New Delhi, Dec 9 (UNI) The Communist Party of India (CPI) today criticed ICICI Bank's move to take over Sangli Bank Ltd and voiced distress over foreign banks being allowed to buy Indian banks.

''It is very distressing to see that foreign banks are allowed to take over Indian banks. This will adversely impact the job security and rights of the employees,'' the party said in a statement issued here.

When the discussion on the Bank Reforms Bill and other isuues related to finance sector liberalisation are inconclusive between the UPA Government and Left Parties, such moves are clandestinely allowed to take place. It is not acceptable, it added.

The Board of Directors of both the banks today separately approved the all-stock merger of the Sangli Bank Ltd with the ICICI Bank Ltd.

The proposed amalgamation touted at Rs 300 crore is subject to regulatory approvals and would result in issuance of additional 3.45 million shares or 0.4 per cent of the equity share capital of ICICI Bank.

ICICI Bank will seek the central bank's permission on Monday for the proposed deal.

Through the proposed amalgamation, ICICI Bank seeks to leverage Sangli Bank's 190-branch network, existing customer and employee base across urban and rural centres in the rollout of its rural and small enterprise banking operations, the new key focus area of the bank.

For shareholders of the Sangli Bank Ltd, the amalgamation would enable them to participate in the growth of ICICI Bank.

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