Shares of Kotak Bank and ING Vysya Bank surge to record high on merger talks

Kotak Mahindra Bank surged as much as 7.6 percent to a record high of Rs 1,159.15 on reports that Kotak is close to acquiring ING Vysya bank.

Kotak Mahindra is heading towards its biggest single-day gain since September 2013.

[caption id=“attachment_86416” align=“alignleft” width=“380”] Kotak Mahindra is heading towards its biggest single-day gain since September 2013.[/caption]

ING Vysya Bank soared as much as 7.4 percent to record high of Rs 813.50.

Brokerage Nomura said the acquisition will be good for Kotak. Both banks have low geographical overlap, similar liability mix, Nomura says, adding it will provide Kotak with an SME banking platform.
Nomura said potential acquisition will also help Kotak comply with RBI’s deadline on reducing promoter’s stake.

Kotak, however, said no decision has been made in relation to any merger.

On Tuesday, the Economic Times reported that Uday Kotak, Executive Vice Chairman and Managing Director, Kotak Mahindra Bank is in final stages of acquiring ING Vysysa Bank.
With inputs from Reuters