Shares of Kotak Mahindra Bank and ING Vysya Bank rose by 2.39% to 2.49% on BSE at 15:00 IST, extending previous session's gains after the Reserve Bank of India approved the amalgamation of ING Vysya and Kotak Mahindra Bank.
Kotak Mahindra Bank was up 2.49% at Rs 1,394.85. On 1 April 2015, shares of Kotak Mahindra Bank rose 3.64% to Rs 1,361. The stock has risen 6.22% in two sessions from Rs 1,313.15 on 31 March 2015.
ING Vysya Bank was up 2.39% at Rs 1,000. Shares of ING Vysya Bank rose 4.38% to Rs 976.65. The stock has risen 6.87% in two sessions from Rs 935.70 on 31 March 2015.
The S&P BSE Sensex was up 225.57 points, or 0.80% at 28,485.71.
On 1 April 2015, the Reserve Bank of India (RBI) sanctioned the scheme of amalgamation of ING Vysya Bank (ING Vysya) with Kotak Mahindra Bank (Kotak). The scheme will come into force with effect from 1 April 2015. All the branches of ING Vysya will function as branches of Kotak with effect from 1 April 2015, RBI said in a statement.
In November last year, Kotak Mahindra Bank and ING Vysya Bank had announced amalgamation of ING Vysya with Kotak Mahindra in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya. The merger would result in issuance of approximately 15.2% of the equity share capital of the merged Kotak.
The combined ING-Kotak will have 1,214 branches, with a wide-spread pan-India network, getting both breadth and depth given the strong geographic complementarity between Kotak and ING Vysya. Substantial efficiencies will arise out of the proposed merger, which is likely to result in significant benefits for all stakeholders, be it shareholders, employees or customers, and ultimately the banking Industry, Kotak Mahindra and ING Vysya had stated earlier.
ING Vysya Bank is a leading private sector bank with retail, private and wholesale banking platforms.
Kotak Mahindra Group is one of India's leading financial services conglomerates. The group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector.
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