Shares of ICICI Bank today jumped 2 per cent after its board approved the merger deal between itself and the Bank of Rajasthan, whose shares soared a fresh 10 per cent on the BSE.

ICICI Bank shares jumped 2 per cent from its previous close to a high of Rs 852 on the BSE in the morning trade.

Meanwhile, continuing its upward rally shares of Bank of Rajasthan jumped another 10 per cent to a one-year high of Rs 158.80 on the BSE. Shares of Bank of Rajasthan have gained 84 per cent in five trading sessions since the announcement of the merger last week.

Yesterday, ICICI Bank announced merger of Bank of Rajasthan with it through share-swap in a non-cash deal that values the BoR at about Rs 3,000 crore.

After the approval of the deal by the boards of the two banks, ICICI Bank Managing Director and CEO Chanda Kochhar had said it is a win-win situation for shareholders. Just by dilution of three per cent of our equity, we will get Bank of Rajasthan and it will expand our network by one fourth.

Announcing the deal, Kochhar said ICICI would offer 25 shares for every 118 shares of BoR, but its promoters Tayal family, who have have over 50 per cent stake would not get a board seat in the amalgamated entity.

Kochhar had said shareholders' approval for the deal would be obtained at the extraordinary general meeting on June 21.

On May 18, ICICI Bank had entered into agreement with Bank of Rajasthan to amalgamate the latter with itself.