Bank of Rajasthan

Bank of Rajasthan Ltd was an Indian private-sector bank whose origins lay in Udaipur, Rajasthan, where it was established in 1943 with initial capital of 10 lakh rupees. Industrialist Seth Shri Govindram Seksaria served as its founding chairman, while Dwarka Prasad Gupta was its first general manager. The institution developed during the formative period of modern Indian banking and was recognized as a scheduled bank in 1948. The bank’s historical identity was closely associated with Rajasthan. Its registered office remained in Udaipur, while its central office was located in Jaipur. Although it later expanded beyond its home state, Rajasthan continued to be its principal operating base: shortly before its merger, the bank reportedly had 463 branches in 24 Indian states, including 294 branches in Rajasthan. Its activities covered conventional retail and commercial banking, including deposit-taking, lending, and branch-based banking services. Bank of Rajasthan also participated in regional rural banking. On 26 January 1983, it helped establish Mewar Anchlik Gramin Bank in Udaipur district, reflecting the period’s policy emphasis on extending formal banking access to rural communities and agricultural areas. This initiative formed part of the bank’s broader association with Rajasthan’s regional economy rather than representing a separate national brand platform. The bank later encountered regulatory and financial concerns. The Reserve Bank of India criticized its promoters over the failure to reduce their holdings as required or expected under applicable banking and ownership norms. These issues contributed to pressure for a strategic resolution. In 2010, Bank of Rajasthan was acquired by ICICI Bank and ceased to operate as an independent banking institution. The transaction was reported at a consideration of approximately 30 billion rupees, with the approved share-exchange arrangement providing 25 ICICI Bank shares for every 118 Bank of Rajasthan shares. Following the merger, the Bank of Rajasthan name no longer represented a standalone banking network. The brand is therefore best understood as a historical regional Indian bank rather than an active financial-services brand. Its legacy rests on its early role in Rajasthan’s banking sector, its later expansion across India, its participation in rural banking, and its absorption into one of India’s largest private-sector banking groups.

Bank of Rajasthan was established in Udaipur in 1943 as a private-sector Indian bank. Its founding chairman was the industrialist Seth Shri Govindram Seksaria, and its first general manager was Dwarka Prasad Gupta. The bank began with reported capital of 10 lakh rupees, reflecting its origins as a regional institution serving the commercial and personal banking needs of Rajasthan. In 1948, the bank was classified as a scheduled bank. That status placed it within India’s formal scheduled-banking system and supported its subsequent development as a regulated deposit-taking and lending institution. Its historical corporate presence was divided between Udaipur, where its registered office was located, and Jaipur, where its central office was based. The bank also became involved in the expansion of banking services beyond urban centers. On 26 January 1983, it established Mewar Anchlik Gramin Bank in Udaipur district, Rajasthan. The rural bank reflected the policy environment of the period, when regional institutions were encouraged to provide credit and financial services to rural communities, farmers, and smaller businesses. Over time, Bank of Rajasthan expanded outside its home state. Before its absorption into ICICI Bank, it reportedly operated 463 branches across 24 Indian states. Rajasthan remained its strongest geographic market, accounting for 294 of those branches. This network gave the institution a broader national footprint while preserving its identity as a bank with deep roots in Rajasthan. The bank’s later years were marked by financial and regulatory difficulties. The Reserve Bank of India criticized the promoters over their failure to reduce their ownership holdings. The ownership issue became part of the broader circumstances that made an independent continuation of the bank more difficult. Rather than remaining a standalone regional bank, Bank of Rajasthan entered into a merger transaction with ICICI Bank in 2010. The acquisition was reported at approximately 30 billion rupees. The share-exchange terms provided for 25 ICICI Bank shares for every 118 Bank of Rajasthan shares. Once the transaction took effect, Bank of Rajasthan was merged into ICICI Bank and its separate brand and corporate identity ceased to operate as an independent bank. The institution is consequently a defunct banking brand whose operational legacy survives primarily through the assets, branches, customers, and banking relationships transferred into ICICI Bank.

• 2010

  Merged into ICICI Bank

  [1]Bank of Rajasthanen.wikipedia.org

  Bank of Rajasthan was acquired and merged with ICICI Bank under a reported share-exchange arrangement of 25 ICICI Bank shares for every 118 Bank of Rajasthan shares.

• 1983

  Rural banking affiliate established

  [1]Bank of Rajasthanen.wikipedia.org

  Mewar Anchlik Gramin Bank was established in Udaipur district on 26 January, extending the bank’s regional role into rural banking.

• 1948

  Classified as a scheduled bank

  [1]Bank of Rajasthanen.wikipedia.org

  The institution was classified as a scheduled bank within India’s regulated banking system.

• 1943

  Bank founded in Udaipur

  [1]Bank of Rajasthanen.wikipedia.org

  Bank of Rajasthan was established in Udaipur with reported initial capital of 10 lakh rupees. Seth Shri Govindram Seksaria was the founding chairman and Dwarka Prasad Gupta was the first general manager.

A Rajasthan-rooted private-sector bank serving retail, commercial, and regional rural banking needs in India.

• Banking services

  Retail banking

  The bank’s branch network supported conventional retail banking, including customer deposits, account services, personal lending, and other routine services associated with a private-sector Indian bank. Its large Rajasthan presence made branch access a central part of the customer proposition.

• Banking services

  Commercial banking

  Bank of Rajasthan served commercial customers through business deposits, credit, and relationship-based branch banking. Its expansion to 24 states broadened the potential customer base beyond Rajasthan, although the bank retained a distinctly regional historical identity.

• Regional rural banking · 1983

  Rural banking

  The bank participated in rural financial inclusion through the establishment of Mewar Anchlik Gramin Bank in Udaipur district in 1983. The initiative connected the institution with the regional rural-banking framework and the provision of formal financial services outside major urban centers.

• 2010

  Approve merger with ICICI BankM&A

  Background

  Bank of Rajasthan faced regulatory criticism concerning promoter ownership levels and was under pressure to resolve its independent financial and governance position.

  Action taken

  The bank entered into an acquisition and merger with ICICI Bank. The reported consideration was approximately 30 billion rupees, with 25 ICICI Bank shares offered for every 118 Bank of Rajasthan shares.

  Aftermath

  The transaction ended Bank of Rajasthan’s existence as an independent bank and transferred its operations into ICICI Bank.

  Reported transaction consideration. Approximately INR 30 billion (2010)

  Source

1. 1Bank of Rajasthanen.wikipedia.org