ING Vysya Bank acquisition will be good fit for Kotak - Nomura

Reuters Market Eye - Acquiring ING Vysya Bank Ltd may strategically fill many gaps for Kotak Mahindra Bank, Nomura says in a report.

Kotak is close to acquiring ING Vysya bank, ET Now business news channel reported on Wednesday.

Exchanges have asked ING Vysya Bank to clarify the media report.

Both banks have low geographical overlap, similar liability mix, Nomura says, adding it will provide Kotak with an SME banking platform.

Says potential acquisition will also help Kotak comply with RBI's deadline on reducing promoter's stake.

Will be incrementally positive on Kotak if deal happens at valuations which are 10 pct accretive to earnings/networth, it says.

 

Nomura currently has a "neutral" rating on Kotak.

(Reporting by Abhishek Vishnoi)