Kotak Bank, ING Vysya Bank shares zoom on reported merger talks

MUMBAI, NOV 20:  

ING Vysya Bank (IVB), which is reported to be in talks for a possible merger with Kotak Mahindra Bank (KMB), has informed the Bombay Stock Exchange (BSE) that it “will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company''.

There are reports that the Bengaluru headquartered IVB may be merged with Mumbai-headquartered KMB.

The share swap ratio that market players are expecting for the merger is two shares of KMB for every 2.5 shares of IVB held.

Kotak Mahindra Bank shares soared 7.28 per cent to end at Rs. 1,157.05 on the BSE and ING Vysya Bank shares surged 7.15 per cent to end at Rs. 814.20.

As of September-end 2014, ING Vysya Bank had deposits and advances aggregating Rs. 44,652 crore and Rs.40,066 crore, respectively. It has 573 branches and extension counters and 635 ATMs across the country.

It was formed from the 2002 acquisition of an equity stake in Indian Vysya Bank by the Dutch ING Group. This merger marked the first between an Indian bank and a foreign bank. ING Group holds 42.73 per cent stake in the bank.

Shailendra Bhandari, MD & CEO, ING Vysya Bank, had submitted his resignation last month and the board of directors, at its meeting held October 28,2014, approved his letter of resignation. Bhandari will continue to be in the office till January 31, 2015.

In pursuance of its succession plan, the board, at the same meeting, proposed the appointment of Uday Sareen, currently Deputy CEO and Wholesale Banking Head as MD & CEO, subject to the approval of Reserve Bank of India.

As of September-end 2014, KMB (standalone) had deposits and advances aggregating Rs. 68,103 crore and Rs. 60,948 crore, respectively. It has 573 branches and extension counters and 635 ATMs across the country. KMB has 641 full-fledged branches across 363 locations and 1,159 ATMs.