Kotak, ING merger deal given green signal by CCI

Merger of these banks will create fourth largest bank in private sector in India

GN Bureau | February 21, 2015


#kotak Mahindra bank   #ing vysya   #merger   #competition   #bank   #branches  

India’s fourth largest private bank will come into being with the approval of Competition Commission of India (CCI) for the merger deal between Kotak Mahindra Bank and ING Vysya Bank.

In November 2014, Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal. In December 2014, Kotak Mahindra approached CCI for its approval on the deal. The proposed combination would not result in the removal of a significant competitor," the order of the CCI order said while giving green signal to the Rs.15,000 crore merger proposal.

The CCI noted that the market shares of both the banks is insignificant and that presence of large players in these markets would act as a competitive constraint to the parties. The competition regulator took into account multiple relevant markets including those for deposits, home loans, agricultural banking and card business.

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year following which it had approached CCI for approval on the deal in December. "The commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India," the CCI order said.

However, the deal will give Kotak a significant ramp-up in its branch presence in southern India. At present, 46 per cent of its branches are in western parts of the country and ING has large presence in the South. Kotak has strong retail business and this will be leveraged with ING's small and medium enterprises (SME) clientele base.

Currently, Kotak Mahindra Bank offers a wide range of banking and financial services through its 641 branches located across India. Kotak, through its various subsidiaries, also provides life insurance, asset management, brokerage, investment banking and investment advisory services.

The  ING Vysya has 573 branches across India and offers retail banking, corporate banking and credit card services. The bank also provides portfolio management, investment advisory and securities depository services.

Comments

 

Other News

Govt approves disinvestment of SAIL subsidiaries

The government has accorded in-principle approval for strategic disinvestment of three units of Steel Authority of India Limited (SAIL), a Maharatna PSU, namely Visveswaraya Iron and Steel Plant (VISP), Bhadravati, Salem Steel Plant (SSP), Tamil Nadu and Alloy Steel Plant (ASP), Durgapur. 

Hope Adityanath adjusts his public rhetoric to befit his new office: Expert

  Indian parties do not choose their politicians with a view to what the world might conclude, but there is no denying the signal Yogi Adityanath’s pick sends: with a huge mandate, the BJP has decided to lead with the face of religious nationalism—not the forward-looking, twe

The secret of Modi’s success

Here is a proposition: Narendra Modi is the top  thinker, the top intellectual of our times. Is that an exaggerated claim? Not altogether. Here’s why. After Brexit and after Trump, intellectuals, especially in the west, are busy guessing what exactly is going on in the world, what

Do you think campaigning by UP CM Yogi Adityanath in Delhi civic polls will boost BJP`s victory chances?

Do you think campaigning by UP CM Yogi Adityanath in Delhi civic polls will boost BJP`s victory chances?

Allow uninterrupted discussion on Finance Bill: Civil society to Hamid Ansari

Almost a week ago, Finance Bill, 2017, was passed in the Lok Sabha as a money bill in the midst of a walk out by the opposition.  In the 92-page document of the bill, centre has pushed 40 amendments to various acts including the IT Act. Eminent people like Fali Nariman, Girish Karnad, TM Krishna, Arun

BHEL unveils 250 MW eco-friendly lignite power plant in Gujarat

  Bharat Heavy Electricals Limited (BHEL), a Maharatna PSU, has successfully commissioned 250 MW unit based on eco-friendly circulating fluidized bed combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel.    The 250 MW lignite

Video

योगी आदित्यनाथ ने किया गृह प्रवेश

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter