Vysya Up On Ing Buy

The stock price of Vysya Bank edged up in intra-day trades today with thin volumes subsequent to an announcement that the ING Group has completed the acquisition of additional stake in the private sector bank.

On the Bombay Stock Exchange, the stock rose 1.79 per cent at Rs 283 in intra-day trades and settled at Rs 276.55, down 0.54 per cent over Monday's close. On the National Stock Exchange, 13,145 shares were changed hands through 257 deals. The scrip has gained around 17 per cent from Rs 234.35 on August 2.

A dealer at an institutional brokerage house said that several retail investors were active on the counter following reports that Dutch banking group ING has completed the acquisition of a 23.99 per cent stake in the private sector bank.

Subsequent to the stake hike, the ING Group's holding has gone up to 43.99 per cent from 20 per cent.

In June 2002, Banque Bruxelles Lambert SA (part of the ING group), through its wholly owned subsidiary BBL Mauritius Holdings, decided to purchase 54,36,235 fully paid-up equity shares of the face value of Rs 10 each, representing 23.99 per cent of the issued equity share capital of the bank from the promoter group of Vysya Bank.

The acquisition was made at an average price of Rs 626.92 per share. On Monday, Vysya Bank reconstituted its board of directors following the hike in ING group's holding. Analysts say the acquiring of control by the ING group makes Vysya Bank a foreign bank and it will also be able to draw on the global expertise, client relationships and product offerings of the ING Group.

For the June-ended quarter, the bank registered a net profit growth of 11 per cent to Rs 22.27 crore on an 11 per cent rise in net interest income to Rs 36.38 crore.

For fiscal 2002, it registered a 5 per cent rise in net interest income to Rs 182.17 crore and a 78 per cent jump in net profit to Rs 68.75 crore.