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Kotak Mahindra ING Vysya merger gets shareholders nod

Shareholders have approved merger of Kotak Mahindra Bank and ING Vysya Bank with a share exchange ratio of 725:1000.

The News International Team

Shareholders have approved merger of  Kotak Mahindra Bank and  ING Vysya Bank with a share exchange ratio of 725:1000.

“The amalgamation was approved by 99.30 percent in number representing 99.93 percent in value of the shareholders present. The merger is subject to the approval of Reserve Bank of India (RBI), Competition Commission of India (CCI) and such other approvals as may be required,” a press statement said.

The extraordinary general meeting (EGM) of the members of ING Vysya Bank and Kotak Mahindra Bank was held in Bengaluru and Mumbai respectively.

The merger will be done through a share swap in which 725 equity shares of Rs 5 each of Kotak Mahindra will be issued for every 1,000 shares of Rs 10 each held in ING Vysya Bank.

Post  the merger that was announced on November 20, 2014, Kotak Mahindra Bank will become the fourth largest private sector lender in India. The biggest three are ICICI Bank, HDFC Bank and Axis Bank. The combined banking entity will have a widespread network of 1214 branches across the country. 

However, employees and officers of ING Vysya Bank had expressed concerns over their future post the merger.

Both ING Vysya jumped 2.5 percent while Kotak Mahindra gained 3 percent intraday on Thursday.

At 09:36 hrs ING Vysya Bank was quoting at Rs 893.00, up Rs 14.75, or 1.68 percent. Kotak Mahindra Bank was quoting at Rs 1,291.90, up Rs 21.20, or 1.67 percent on the BSE.

Kotak Mahindra stock price

On January 08, 2015, at 10:14 hrs Kotak Mahindra Bank was quoting at Rs 1297.10, up Rs 26.40, or 2.08 percent. The 52-week high of the share was Rs 1312.00 and the 52-week low was Rs 630.80.


The company’s trailing 12-month (TTM) EPS was at Rs 21.01 per share as per the quarter ended September 2014. The stock’s price-to-earnings (P/E) ratio was 61.74. The latest book value of the company is Rs 159.07 per share. At current value, the price-to-book value of the company is 8.15.

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