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

Many roles of civil society during pandemic

The union government enforced a nationwide lockdown on March 25, 2020 to curb the spread of coronavirus as it was causing large-scale infection and disease. Challenges of pandemic management and levels of distress were revealed during this time. The fear of Covid spread like wildfire and a

Thackeray launches three fast-track DNA units under Nirbhaya scheme

Maharashtra chief minister Uddhav Thackeray has launched three state-of-the-art human DNA units under the Nirbhaya Scheme for efficiency in criminal investigations. A wildlife DNA unit in Nagpur makes Maharashtra the country’s first state to have a forensic testing lab for animals.  

How foreign policy has been Modi’s focus right from the start

The Midway Battle: Modi’s Roller-coaster Second Term By Gautam Chintamani Bloomsbury / 400 pages / Rs 699 Gautam Chintamani, a film historian and author, has penned an in-depth chronicle of prime minister Narendra Modi’s second

Remove unauthorized constructions without pressure: Thackeray to BMC

Maharashtra chief minister Uddhav Thackeray has instructed the Mumbai civic authorities to take immediate action on unauthorized constructions on war footing. In a virtual meeting held on Wednesday, Thackeray said no illegal construction will be tolerated in Mumbai and called upon the BMC to

Covid norms relaxed; Mumbai restaurants, shops to remain open longer

After extending timings of shops and restaurants as well as the reopening of cinema halls and theatres under specified SOPs from October 22, in view of the festive cheer, the Maharashtra government has allowed restaurants and eateries to remain open till 12AM and shops and establishments to function till 1

Global Hunger Index data collection flawed: Arvind Panagariya

Rubbishing the recently released Global Hunger Index 2021, wherein India has slipped to 101 position to be placed below Pakistan, Nepal and Bangladesh, Arvind Panagariya, professor of economics at Columbia University and former vice chairman, NITI Aayog, has said that data collection and methodologies used

Visionary Talk with Dr Arvind Panagariya, Professor, Columbia University & Former VC, NITI Aayog



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter