ING Vysya Bank, Kotak Mahindra Bank scale record high on merger buzz

ING Vysya Bank jumped 11.86% and Kotak Mahindra Bank gained 5.98% at 12:05 IST on BSE on reports that the latter is in final stages to buy the former.

ING Vysya Bank jumped 11.86% to Rs 850. The stock scaled a record high of Rs 864.80 in intraday trade today, 20 November 2014. The stock hit a low of Rs 768.95 so far during the day. The stock had hit a 52-week low of Rs 493 on 4 February 2014. On BSE, so far 5.15 lakh shares were traded in the counter as against average daily volume of 31,260 shares in the past one quarter.

Shares of Kotak Mahindra Bank gained 5.98% to Rs 1,142.75 after scaling a record high of Rs 1,160.05 in intraday trade today, 20 November 2014. The stock hit a low of Rs 1,086.25 so far during the day. On BSE, so far 1.56 lakh shares were traded in the counter as against average daily volume of 80,798 shares in the past one quarter.

Meanwhile, the S&P BSE Sensex was down 67.92 points or 0.24% at 27,964.93

Kotak Mahindra Bank is reportedly in final stages to buy ING Vysya Bank in ratio of 2:2.5 (two shares of Kotak Mahindra Bank for 2.5 shares of ING Vysya Bank). The deal values ING Vysya Bank at Rs 16500 crore, reports added.

As per reports, acquiring ING Vysya Bank may strategically fill many gaps for Kotak Mahindra Bank. Both banks have low geographical overlap, similar liability mix and adding it will provide Kotak with an (small and medium enterprises) SME banking platform, reports added. Potential acquisition will also help Kotak comply with the Reserve Bank of India's (RBI's) deadline on reducing promoter stake, reports further informed.

ING Vysya Bank is the only Indian lender controlled by an overseas company. ING of Dutch origin is the single-largest shareholder of the bank with 42.73% stake as on 30 September 2014.

However, Kotak Mahindra Bank during market hours today, 20 November 2014 clarified that no decision has been made by the bank in relation to any merger or acquisition transaction. Also ING Vysya Bank during market hours today, 20 November 2014 clarified that the bank is aware of disclosure obligations of the Listing Agreement and will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by it.

ING Vysya Bank is a leading private sector bank with retail, private and wholesale banking platforms.

Kotak Mahindra Group is one of India's leading financial services conglomerates. The group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector.

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