Kotak Mahindra Bank, ING Vysya Bank extend gain on CCI nod for merger

Kotak Mahindra Bank rallied 3% to Rs 1,354, while ING Vysya Bank up nearly 2% at Rs 941 on BSE.

Shares of Kotak Mahindra Bank and ING Vysya Bank gained for the second straight session on the BSE, after the Competition Commission of India (CCI) has approved the proposed merger of ING Vysya Bank with the Kotak Mahindra Bank.

Kotak Mahindra Bank has rallied 3% to Rs 1,354, while ING Vysya Bank up nearly 2% at Rs 941 on BSE. Both these stocks had gained nearly 1% each on Monday.

On November 20, 2014, the boards of Kotak Mahindra Bank and ING Vysya Bank had approved merger with swap ratio of 725 equity share of Rs 5 each of Kotak Mahindra Bank for every 1000 equity shares of Rs 10 each held in ING Vyasya Bank.

Kotak Mahindra Bank and ING Vyasa Bank are private sector banks, offering a wide range of financial services.

The proposed consolidation is founded on leveraging significant complementarities that exist between both the banks, particularly relating to branch network, product offering and customer segments. This revenue synergy led and growth oriented amalgamation, adopting best practices of banking, governance and prudence from both banks, is expected to result in a superior platform benefitting from efficiencies of size and scope over time for all stakeholders such as shareholders, customers, and employees, Kotak Mahindra Bank said while announcement of merger.

Kotak Mahindra Bank hit a record high of Rs 1,440 on January 15 and ING Vysya Bank touched lifetime high of Rs 1,010 on January 13 this year.