Kotak mahindra bank and ing vysya merger analysis pdf

The oard of directors of kotak mahindra ank ltd kotak and the. The period taken for premerger is four years and postmerger is one year. With the ing vysya bank merger, composition of the loan portfolio has been altered with retail advances proportion declining to 42% from 50%. Request pdf merger of kotak mahindra bank and ing vysya bank. Ing vysya bank vysya and kotak mahindra bank kotak today announced pdf their intention to merge their respective businesses. Nearly 27 months ago billionaire uday kotak announced the takeover of ing vysya bank after years of eyeing it. The case study is about the merger deal between ing vysya bank and kotak mahindra bank. However, kotak bank has already proved its mettle after a big merger with southern bank ing vysya, which was.

Effective april 1, 2015, ing vysya bank merged with kotak mahindra bank kotak, pushing the merged entity to the position of indias fourth largest private sector bank in terms of both number of branches and profitability. Nov 20, 2014 ing vysya bank vysya and kotak mahindra bank kotak today announced their intention to merge their respective businesses. Ing vysya employees oppose merger with kotak mahindra bank. In the allshare deal, 725 equity shares of rs 5 each face value of kotak mahindra will be issued for every 1,000 shares of rs 10 each held in ing vysya bank. Why the kotaking vysya bank merger has not been as inexpensive as believed 22 feb, 2017, 02. Shareholders of the mumbaibased kotak bank approved the merger proposal at an extraordinary general meeting in mumbai on wednesday. The rs 15,000 crore kotak mahindra banking vysya bank merger, creating indias fourth largest private sector lender, has received rbi approval and the rebranding process is already underway. This merger brings together two strong industry players to form a more robust and fundamentally sound bank. Kotak bank will buy ing vysya bank in an all stock transaction that gives ing vysya shareholders 725 shares of kotak bank if they own shares of ing vysya. Ing vysya, kotak bank shareholders vote on merger the. While multiple synergies and lowerthanexpected dilution are positives, the combined entitys return ratios will see some pressure in the near term. A senior banker, who knows both puri and kotak well, says they are similar in their approach to banking. Kotak mahindra bank to acquire ing vysya bank for rs. With the merger, total employment jumped to almost 40,000, and the count of branches reached 1,261.

Merger of ing vysya bank with kotak mahindra bank ing group. Ing vysya bank, kotak mahindra bank gain on merger report. As per the paper net profit margin, operating profit margin, return on equity, return on capital employed and debt. May 01, 2018 axis bank any day is a much better bank than any public sector bank, they suggest. Kotak mahindra bank ltd s deal to merge ing vysya bank ltd with itself looks like a steal. Page 1 of 18 discussion on the merger of ing vysya bank with kotak mahindra bank november 21, 2014 management. The merger of ing vysya bank with kotak mahindra bank is one of the major deals in the private sector banking space. At that time, many competitors were envious that he got the asset for a song. Ing vysya bank rallied 7% to rs 8, while kotak mahindra bank gained 4% to rs 1,121 in early trade on bse. Kotak mahindra bank and ing vysya bank announce merger. Read more about kotak mahindraing vysya bank merger at reasonable valuations on business standard. In this research paper, i have selected merger of kotak mahindra bank and ing vyas bank as sample size to analyze merger and acquisition in banking sector. For all common units, a single senior leadership was finalised and the units operated in parallel at. Retail loans form 50% of total loans, enabling kmb to earn the best nim in industry at 4.

Growth synergies achieved by kotak mahindra bank limited. Kotak mahindra bank balance sheet, kotak mahindra bank. Kotak mahindra banking vysya bank deal a wellmatched merger. Purpose the purpose of this paper is to study on the performance of kotak mahindra bank for pre and post period. In an extraordinary general meeting egm held at the headquarters of ing vysya here. This approval is considered as important step for merging of two banks to form new entity. Ing vysya bank has been merged with kotak mahindra bank after. On the date of acquisition, ing vysya bank had over 577 branches and 10 extension counters. Kotak mahindra acquires ing vysya bank, to become indias. The private sector banking space witnessed its first consolidation move in four years on thursday with ing vysya bank and kotak mahindra bank kmb announcing that they were merging in. Kotak mahindra bank, ing v ysya bank, market power. Kotak mahindra bank to acquire ing vysya bank for rs 15,000. After announcement of merger share price of kotak mahindra bank rose from rs. 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 case provides enough material to discuss the dynamics and the mergers in the indian banking industry. Mar 12, 2018 in february, the proposed merger between kotak mahindra bank and ing vysya bank got the competition commission of indias approval saying that the merger is not likely to have an appreciable. In many ways, kotak mahindra bank is a smaller version of hdfc bank, almost like a twin born a decade later with the same genes. Ing vysya bank vysya and kotak mahindra bank kotak today announced their intention to merge their respective businesses. Shareholders of ing vysya and kotak reserve bank of. It seems that in both of the cases, the percentage of increase in pat is more than net total income. The proposed rs 15,000crore merger deal between kotak mahindra bank and ing vysya has got a green signal. In 2015, kotak bank acquired ing vysya bank in a deal valued at. Research and methodology to augment my knowledge on mergers and acquisitions, ing vysyas past company profile and the current position of. Kotak mahindra bank acquires ing vysya bank for rs 15,000.

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. Ng vysya bank kotak mahindra merger news and updates from the economictimes. The merged entity will have 1,261 branches and 1,930 atms. 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. Kotak bank shareholders approve merger of ing vysya bank.

In 2019, fairness opinion for merger between bandhan bank and gruh finance. The combination of their businesses will lead to a strengthened. Ing vysya including its business and branches merges into kotak. A swort analysis of the merger is expected for both the banks. Later in 2008, centurion bank of punjab merged into hdfc bank. Innovative financial products of diverse categories 2.

Ng vysya bank kotak mahindra merger news and updates from. Others mergers and acquisitions in the banking sector. 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. This merger will help kotak tap into ing vysya banks better mix of rural and urban branches. In late 2014, kotak mahindra bank limited kotak, one of indias rapidly expanding banks, announced its allstock acquisition of ing vysya bank limited. Kotak mahindra bank acquires ing vysya bank for rs 15,000 cr. Mergers and acquisitions in the indian banking sector mergers and acquisitions in indian banking sector pdf. Read more about ing vysya bank, kotak mahindra bank gain on merger report on business standard. Ing vysya bank to merge with kotak mahindra bank the hindu. Kotak mahindra board okays merger of ing vysya bank the. Nov 20, 2014 in an all stock amalgamation, ing vysya bank on thursday decided to merge with kotak mahindra bank, creating the fourth largest private sector bank in the country.

Kotak mahindra, ing vysya bank shares surge on merger report. The bank is now in its 5th year since the merger and the revenue synergies and the cost efficiencies are particularly alien to the society. The exchange ratio has been fixed at 725 kotak shares with 1, 000 ing vysya shares. Majority of employeeshareholders of ing vysya opposed the companys move to merge with kotak mahindra bank. My objective of this research paper is to analyze merger and acquisition in banking sector and. The merger between kotak mahindra bank and ing vysya bank has received the approval of shareholders of both. Merger and acquisition, kotak mahindra bank, ing vyas bank. Effect of kotak mahindra, ing vysya bank merger on fd rates the indian banking system is showing signs of maturity as many private sector banks are going in for consolidation. The deal created the fourth largest private sector bank in the indian banking industry.

Kotak mahindra bank, promoted by uday kotak, post receiving a licence in 2002, grew to a loan book size of 103614 crore in fy15. Ing vysya bank completes merger with kotak mahindra bank. Stock price movement of ing vysya and kotak mahindra bank. Kotak mahindra bank and ing vysya bank announce merger significant complementarity and growth potential drives merger. The case also provides enough material to analyze and discuss the synergies and challenges of the merger deal of. Ing vysya bank to merge with kotak mahindra bank ing.

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. Kotak mahindra bank has its operations focused predominantly in metros. Merger of ing vysya bank with kotak mahindra bank presentation. Pdf mergers and acquisitions in the indian banking. Performance is evaluated on the basis of quick ratio. Company analysis business aspects kotak mahindra bank has a. Discussion on the merger of ing vysya bank with kotak. In an all stock amalgamation, ing vysya bank on thursday decided to merge with kotak mahindra bank, creating the fourth largest private sector bank in the country. Ing vysya bank staff concerned over merger with kotak times. Although two more mergers took place during this period but those were under different circumstances. Ing vysya bank has been a respected name in the indian banking sector.

Pdf mergers and acquisitions in the indian banking sector. The transaction the board of directors of ing vysya and kotak have today approved the merger of ing vysya with kotak, subject to all approvals. With this context this study analyzed pre and post merger performance of ing vysya bank and kotak. Prologue with the current climate of growing globalization and expanding international banks, the need to grow has been imminent for indian banks. To analyze the impact of merger t test was applied to the various financial ratios for before and after merger data, based on the analysis of indian overseas bank data.

Kotak mahindra bank limited and ing vysya bank limited. Shareholders of ing vysya bank and kotak mahindra bank met on wednesday and voted on the proposed merger of the two banks, but the results of the voting will not be known till early thursday as the counting begins late in the evening. Rbi approves merger of ing vysya with kotak mahindra the. Axis bank any day is a much better bank than any public sector bank, they suggest. Cci approves kotak mahindra banks acquisition bid of ing. A case study of ing vysya bank and kotak mahindra bank. Kotak mahindra banks acquisition of ing vysya bank is the countrys first ever amalgamation of a profit earning entity post the global financial meltdown in 2008. Get kotak mahindra bank latest balance sheet, financial statements and kotak mahindra bank detailed profit and loss accounts. Ing bank merges with kotak bank nishith desai associates. The period taken for premerger is four years and postmerger is. Kotak mahindra bank ltd is acquiring ing vysya bank ltd in an allstock transaction that will create indias fourth largest private sector lender with nearly. 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.

With the integration process complete, the bank is stepping up on growth with credit offtake inching up to 21% in q2fy18 18% in q1fy18. The latest to join the consolidation spree is kotak mahindra bank which has decided to buyout ing vysya bank in an allstock deal valued at rs. The extraordinary general meeting or egm of the members of ing vysya bank was held in bengaluru and for kotak mahindra bank it was held in mumbai for. In 2018, merger of radiant life care with max healthcare. Post merger of ing vysya bank, kotak banks loan book was at 118665 crore with alteration in composition of loan portfolio, retail advances proportion declining to 41% from 50%. However, kotak bank has already proved its mettle after a. Dec 05, 2017 kotak bank and ing vysya bank merger 1. While the merger, which has propelled the bank to fourth rank, is nearing completion, insiders believe that it wasnt as inexpensive as people believed it to be. Nov 20, 2014 in the allshare deal, 725 equity shares of rs 5 each face value of kotak mahindra will be issued for every 1,000 shares of rs 10 each held in ing vysya bank. This merger, the biggest in indias banking history, is. With the integration process complete, the bank is pedalling growth.

Nov 22, 2014 kotak mahindra bank in elite club of private banks even before ing vysya merger although kotak mahindra bank is set to emerge as 4th largest private sector bank after its merger with ing vyasya bank, in terms of market value, it has maintained a similar ranking, each year since 2011. Merger of ing vysya with kotak mahindra bankbusiness. Kotak mahindra bank to acquire ing vysya in allstock deal. Ing vysya was incorporated as vysya bank limited vysya bank in 1930 in bangalore, karnataka. Kotak bank and ing vysya bank merger linkedin slideshare. For all common units, a single senior leadership was finalised and the units operated in parallel at both kotak mahindra bank and erstwhile ing vysya bank. After the merger, ing group, which controlled ing vysya bank, owned a 7% share in kotak mahindra bank. Kotak mahindra had announced the buyout of ing vysya bank in an allstock deal in november last year and it had approached cci for approval on the deal in december. Kotak mahindra bank in elite club of private banks even. 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 merger between ing vysya bank vysya and kotak mahindra bank kotak has today been completed.

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