Kotak Mahindra Bank has considered and granted the approval for the amalgamation of ING Vysya Bank with itself. Post amalgamation, ING Vysya shareholders will get 725 shares of Kotak for every 1,000 they own. Dutch financial giant ING, which has a 42.73 per cent holding in ING Vysya, will have a 25.3 per cent stake in the merged entity, making it the largest non-promoter shareholder.
The proposed merger would result in issuance of nearly 15.2 per cent of the equity share capital of the merged bank.
Further, the merger will increase Kotak’s branches to 1,214 from 641 now. Kotak has a 68 per cent presence in the west and north while ING Vysya is strong in the south, especially Andhra Pradesh, Telangana and Karnataka. Kotak will gain 2 million customers from this merger.
