ING Vysya, Kotak Bank get shareholders nod for merger

Decks have been cleared for the merger of ING Vysya Bank with Kotak Mahindra Bank with the shareholders of both the banks approving the amalgamation proposal at their respective extraordinary general meetings (EGMs) convened on Wednesday.

Both ING Vysya Bank and Kotak Mahindra Bank informed the stock exchanges separately on Thursday morning about securing their shareholders approval for the proposed scheme of amalgamation.

The Bengaluru-headquartered ING Vysya Bank said the proposed scheme of amalgamation was approved by 89.04 per cent of the shareholders present at the EGM, representing 96.89 per cent of the value.

Kotak Bank said 99.30 per cent of its shareholders present at the EGM, representing 99.93 per cent in value approved the proposed merger.

The Kotak Mahindra Bank scrip gained 2.74 per cent in the early trade on Thursday and was trading at Rs 1,305.50, while ING Vysya Bank shares were up 3 per cent at Rs 904.70 on the BSE.

Share swap ratio

The amalgamation is subject to the approval from the Reserve Bank of India, Competition Commission of India and such other approvals as may be required, both the banks said. The share exchange ratio has been fixed at 725 equity shares of Kotak Bank for every 1,000 shares of ING Vysya Bank. The proposed merger will create a new entity that will be the fourth largest private sector bank in the country after ICICI Bank, HDFC Bank and Axis Bank.

A section of employees of ING Vysya Bank have been opposing the proposed merger seeking assurances from Kotak Mahindra Bank on job security and protection of their wages. Kotak Mahindra and ING Vysya had announced the proposed merger in November in a Rs 15,000-crore deal.

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