RBI approved the amalgamation of ING Vysya Bank with Kotak Mahindra Bank [ Current Affairs ]
Governor of RBI sanctioned the scheme of amalgamation of ING Vysya Bank Ltd. with Kotak Mahindra Bank Ltd and the Scheme will come into force with effect from 1 April 2015. According to the sanction, all branches of ING Vysya Bank will function as branches of Kotak Mahindra Bank with effect from 1 April 2015.
- The Scheme was sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949.
- Kotak is the fourth largest private sector lender bank in the country after that HDFC Bank, ICICI Bank and Axis Bank in terms of market capitalization with merger of this approval of RBI.
- On 13 August 2010, the deal is the first major bank takeover since Bank of Rajasthan was amalgamated with the ICICI Bank.
- On 20 November 2014, Kotak Mahindra Bank’s shareholder approved the amalgamation of ING Vysya Bank. According to the deal, 725 shares of Kotak will be swapped for every 1000 share of ING Vysya at a share exchange ratio of 0.725: 1.
- ING Vysya Bank is an old private sector bank that was set up in 1930 whereas Kotak Mahindra Bank (MD Uday Kotak) is a new private sector bank that was set up in 2003.
- Published on: April 3, 2015