At meeting held on 20 November 2014
Kotak Mahindra Bank announced that the Board of Directors of the Company at its meeting held on 20 November 2014, has considered and granted its approval for the amalgamation of ING Vysya Bank with Kotak Mahindra Bank.The Board has approved the share 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. Post-amalgamation, shareholders of ING Vyasa Bank will receive shares of Kotak Mahindra Bank in the aforementioned ratio, resulting in change in shareholding of Kotak Mahindra Bank.
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.
The amalgamation does not fall within the purview of related party transactions.
The transaction will be under Section 4A of the Banking Regulation Act and is subject to the approval of shareholders of both the banks and statutory approvals including those from the Reserve Bank of India and Competition Commission of India.
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