Under the deal, shareholders of ing vysya will get shares of kotak mahindra bank as per the swap ratio of 725 shares of kotak for every 1,000 shares held by them in ing vysya. In 2015, kotak bank acquired ing vysya bank in a deal valued at. After the merger, ing group, which controlled ing vysya bank, owned a 7% share in kotak mahindra bank. Reliable partners kotak and ing for india ing as one of the largest shareholder in kotak ing maintains a board seat in kotaks management board of directors. On the 1 st of april 2015, ing vysya bank merged with kotak mahindra bank. On 29 january 2015, kotak mahindra bank announced that it agreed to invest 19. Pdf mergers and acquisitions in the indian banking sector. Discuss the synergies of the merger between ing vysya and kotak. Kotak mahindra bank aims to double customer base in 18 months. Ing vysya bank vysya and kotak mahindra bank kotak today announced pdf their intention to merge their respective businesses. Feb 09, 2017 kotak bank has a very strong corporate banking franchise, while axis is strong on the retail front, said a top fund manager who has heard about a merger deal being explored by stakeholders of.
Discussion on the merger of ing vysya bank with kotak. Ing vysya kotak mahindra merger latest breaking news, pictures, videos, and special reports from the economic times. In line with ings think forward strategy, the merger of vysya with kotak will give ing a stake in a stronger bank. The combined entity has a strengthened position as one of indias leading privately held banks, with a wider geographical spread and enhanced expertise across customer segments and product categories. Kotak mahindraing vysya merger gets shareholders nod. Apr 07, 2015 the merger between ing vysya bank vysya and kotak mahindra bank kotak has today been completed. Post merger, kotak will have to offer 6% savings interest rate to ing customers also and this would. The case discusses various aspects of the merger process and focuses on the key challenges that firms face while integrating the employees of the merged entities. So the period taken premerger is four years and postmerger is one year. As on march 2014, the savings, current and term deposits of ing vysya bank were 7288 crores and that of kotak was 18828 cr. All shareholders of kotak and ing vysya will participate thereafter in the merged kotak business. Merger and acquisition, kotak mahindra bank, ing vyas bank. An ing representative is placed in kotaks head quarter in mumbai. This merger marked the first between an indian bank and a foreign bank.
Bank arc ing vysya merger kotak mahindra general insurance. Good morning friends and welcome to this call where we are very happy to share with you the announcement of the merger of kotak mahindra bank and ing vysya bank. Employees and officers of ing vysya bank on saturday expressed concerns over their future post the merger with kotak mahindra bank which will come into effect from april 1, 2015. The merger will take some time to come about, and the depositors will be intimated about any changes in interest rates etc. Dec, 2014 the kotak mahindra and ing vysya, both are private sector banks, run by professional managers, and similar in size with a degree of commonality in business and risk approaches. The branches increased from 684 to 1,384 and the atms from 1,273 to 2,051. With the merger, total employment jumped to almost 40,000, and the count of branches reached 1,261. Thomson reuters one via comtex the merger between ing vysya bank vysya and kotak mahindra bank kotak has today been completed. Mergers and acquisitions in the indian banking sector mergers and acquisitions in indian banking sector pdf. Merger driven trends in policy and practices in indian. Effect of kotak mahindra, ing vysya bank merger on fd rates.
In 2019, fairness opinion for merger between bandhan bank and gruh finance. My objective of this research paper is to analyze merger and acquisition in banking sector and analyze performance of bank after merger and acquisition. Ing bank merges with kotak bank nishith desai associates. The recent merger and acquisition case of icici banks, hdfc bank ltd, kotak mahindra bank shows that private sector banks are keen to diversified growth and leadership. Dec 05, 2017 kotak bank and ing vysya bank merger 1. Ing vysya bank ltd was merged with kotak mahindra bank with effect from 1 april 2015. Kotak mahindra bank and ing vysya bank announce merger significant complementarity and growth potential drives merger compelling revenue synergies share exchange ratio of 725 shares for 1,000 shares mumbai, november 20, 2014.
The competition commission of india cci has given its approval to proposed rs 15,000crore merger deal between kotak mahindra bank and ing vysya bank. On november 20, 2014, kotak announced the merger with ing vysya in an allstock deal worth of rs. Kotak bank standalone highlights fy15 merger with ing vysya bank effective from april 1, 2015 board approves 1. Merger of ing vysya with kotak mahindra bankbusiness. The deal was touted as indias biggest banking merger. The savings account interest rate of ing was 4% and kotak gives a savings return of 6%. While earnings for second quarter were 27% higher than same quarter last year, they were just 1. This approval is considered as important step for merging of two banks to form new entity. Postmerger, kotak will have to offer 6% savings interest rate to ing customers also and this would cost 140 cr them on the combined deposits of 27217 cr in 2015. Prologue with the current climate of growing globalization and expanding international banks, the need to grow has been imminent for indian banks.
Now kotak mahindra bank is the fourthlargest private sector bank in india. Kotak mahindra bank net profit slips 56% post ing merger. Post this historic merger, the it team had been working diligently towards integrating the two banking systems, with a focus on improving services to. The merger catapulted the nations fourth largest private bank to nearly rs 2 lakh crore balancesheet size entity. Kotak bank shareholders approve merger of ing vysya bank. The oard of directors of kotak mahindra ank ltd kotak and the oard of directors of ing vysya ank ltd ing vysya at their respective. Kmfl the first nonbanking finance company kotak mahindra bank limited services. A leader in its small and medium enterprise segment in europe, ing vysya has added to kotaks. The deal created the fourth largest private sector bank in the indian banking industry. Kotak mahindra bank and ing vysya bank merger free download as pdf file. Ing vysya kotak internet banking login after merger. Retail and corporate consumer banking service, commercial banking services, investment banking services, etc.
Kotak mahindra bank and ing vysya bank announce merger. Ing vysya kotak mahindra merger blogs, comments and archive news on. Ing vysya bank has been merged with kotak mahindra bank after. The combined entity has a strengthened position as one of. The merger would result in issuance of approximately 15. Kotak is an index stock ing groep will be the largest non promoter shareholder 1 car is based on standalone financials as of september 30, 2014 and includes h1fy15 profit. The oard of directors of kotak mahindra ank ltd kotak and the.
Kotak bank and ing vysya bank merger linkedin slideshare. The exchange ratio has been fixed at 725 kotak shares with 1, 000 ing vysya shares. In 2018, merger of radiant life care with max healthcare. Unitholders of kotak lifestyle fund, kotak indo world infrastructure fund and kotak select focus fund who. Retail loans form 50% of total loans, enabling kmb to earn the best nim in industry at 4. Institutional equity research kotak mahindra bank in. Usually, its not very common to see the merger of two banks. Kotak mahindra bank completed the merger in april this year. The merger between kotak mahindra bank and ing vysya bank has received the approval of shareholders of both. The case discusses various aspects of the merger process and focuses on the key challenges that firms face while integrating the. Ing vysya bank was a privately owned indian multinational bank based in bangalore, with retail, wholesale, and private banking platforms formed from the 2002 purchase of an equity stake in vysya bank by the dutch ing group. Kotak mahindra acquires ing vysya bank, to become indias. Kotak mahindra acquires ing vysya bank, to become indias 4th. Kotak mahindra bank and ing vysya bank merger mergers and.
It has been found that merger has a significant importance in the performance of an organisation. Mar 05, 2017 kotak bank vs ing vyasya amalgamation merger 1. Merger of ing vysya bank with kotak mahindra bank pdf free. Nov 20, 2014 ing has indicated its support for the proposed transaction to vysya and kotak. Kotak indo world infrastructure fund noticecumaddendum with effect from september 10, 2011, kotak lifestyle fund and kotak indo world infrastructure fund will be merged into kotak select focus fund. The present paper is an attempt to investigate the effect of a merger in the performance of kotak mahindra bank. Ing vysya banks shareholders, too, had approved the merger proposal. For this paper, we study the pre and postmerger performance of kotak mahindra bank with ing vyasa with effect from april 1, 2015. Understand the challenges faced by the merged kotak going forward and explore the ways in which it can overcome these challenges. The case also provides enough material to analyze and discuss the synergies and challenges of the merger deal of.
The merger between ing vysya bank vysya and kotak mahindra bank kotak has today been completed. The combination of their businesses will lead to a strengthened position as one of indias leading privately held banks, with a wider geographical spread and enhanced expertise across customer segments and product categories. Ing vysya including its business and branches merges into kotak. Ing has indicated its support for the proposed transaction to vysya and kotak. No need of submitting any form or any additional request since all the active pg rights will be transferred to the ing now kotak customers post merger. Creating strategic advantage kotak mahindra bank ltd and ing. Shareholders of ing vysya will receive shares of kotak in exchange of shares in ing vysya at the approved share exchange swap ratio. Merger of two weaker banks or merger of one health bank with one weak bank can be treated as the faster and less costly way to improve profitability then spurring internal growth franz, h. Merger of ing vysya bank with kotak mahindra bank significant complementarity and growth potential benefits to all stakeholders 20 november 2014 the. Kotak mahindra bank and ing vysya bank merger mergers. Shareholders of mumbai based private sector kotak mahindra bank approved the merger with ing vysya bank with a share exchange ratio of 725. The combination of their businesses will lead to a strengthened position as one of indias leading privately held banks, with a wider geographical spread and enhanced expertise across customer segments and product. Merger of ing vysya bank with kotak mahindra bank free download as word doc. Private sector kotak mahindra bank has received its shareholders nod for merger of bengalaruheadquartered ing vysya bank with itself it was approved by the 99.
Ing remains as a key strategic shareholder to kotak mahindra bank ltd after the merger. Feb 17, 2015 ing vysyas customers might gain from kotak mahindras free demand draft upto rs. As a result of the merger, kotaks branches have more than doubled and have established a strong presence in the south of india too. Discuss and debate whether the merger deal between kotak and ing vysya would help the indian banking industry. From left to right uday kotak, executive vice chairman and managing director of kotak mahindra bank and uday sareen, ceodesignate of ing vysya bank at a press conference announcing the merger between kotak mahindra bank and ing vysya bank in mumbai pic. Cci in its approval mentioned that this merger is not likely to have an appreciable adverse effect on competition in india. Pdf mergers and acquisitions in the indian banking. Ing vysya bank has launched new saving bank account called orange, with facilities like personal accident cover, free annual accident cover. Feb 21, 2017 in 2015, kotak mahindra bank completed acquisition of midsized private sector ing vysya bank for about rs 15,000 crore. Ing vysya bank to merge with kotak mahindra bank ing.
Apr 27, 2015 as the merger of ing vysya bank with kotak mahindra bank was formally completed, uday kotak, executive vicechairman and managing director kotak mahindra bank said, the move would significantly. Avendus capital provides fairness opinion to kotak. Kotak mahindra bank, promoted by uday kotak, post receiving a licence in 2002, grew to a loan book size of 103614 crore in fy15. Shareholders of the mumbaibased kotak bank approved the merger proposal at an extraordinary general meeting in mumbai on wednesday. Merger of ing vysya bank with kotak mahindra bank ing group. Its digital investments are also expected to bring in further operating efficiency. May 01, 2018 however, kotak bank has already proved its mettle after a big merger with southern bank ing vysya, which was almost equal to its balance sheet size, and had a very good portfolio of sme, agri and. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner. For all common units, a single senior leadership was finalised and the units operated in parallel at. In late 2014, kotak mahindra bank limited kotak, one of indias rapidly expanding banks, announced its allstock acquisition of ing vysya bank limited. Effective april 1, 2015, ing vysya bank merged with kotak mahindra bank kotak, pushing the merged entity to the position of indias fourth. On regulatory approval, all of ing vysyas branches and businesses would merge with kotak.
Ing vysya, structured as a merger, resulting in a single. Ing vysya bank staff concerned over merger with kotak times. This is an allstock amalgamation where as part of the merger process, ing vysya bank will merge with kotak mahindra bank and shares will be issued to all the. The kotak and ing vysya merger was first announced in november 2014, which was the beginning of what has been the biggest merger in the history of indias banking sector so far. Growth synergies achieved by kotak mahindra bank limited. The bank will communicate the merger to ing vysya customers and also reissue cheque books, debit and. The current case deals with human resource hr issues in the merger of kotak mahindra bank kmb and ing vysya bank ivb. The case provides enough material to discuss the dynamics and the mergers in the indian banking industry.
We believe cost synergies from the ing %merger have already started to flow through. An ing representative is placed in kotaks head quarter in. Postmerger, kotak will have to offer 6% savings interest rate to ing customers also and this would. Avendus capital provides fairness opinion to kotak mahindra. Request pdf merger of kotak mahindra bank and ing vysya bank. Ing vysya bank completes merger with kotak mahindra bank. Year of merger name of the banks acquired name of the banks merged into 2019 april bank of baroda vijaya bank and dena bank 2017 april state bank of india bhartiya mahila bank bmb 2017 april state bank of india all the 5 associates of sbi 2014 nov kotak mahindra bank ing vyasa bank 2010 may icici bank bank of rajasthan. The paper presented a case study of recent merger of ing vysya bank with kotak mahindra bank considering the. Ing will continue to service its indian clients outside of india and will support its global. The case study is about the merger deal between ing vysya bank and kotak mahindra bank. Prior to this transaction, vysya bank had a sevenyearold strategic alliance and shareholding. Read more about avendus capital provides fairness opinion to kotak mahindra bank ltd, on the share exchange ratio, in its merger with ing vysya bank ltd on our website. The kotak ing merger is on track, with secondquarter fiscal 2016 merged entity numbers broadly in line with our estimates.
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