Business

Uday Kotak may acquire IndusInd Bank- Says Report

According to one news website report Kotak Mahindra Bank Ltd may takeover it’s smaller rival Induslnd Bank Ltd. If this acquisition happen it will help Kotak Mahindra bank through expanding its presence in the Indian banking sector, especially in the retail segment.

Induslnd Bank had organised a discussion for the merger. As per reports the merger can be done via a share swap.
Two people cited above statement, appealing anonymity as the talks are private.

In term of Market capital Induslnd Bank has a market capital of ₹50,000 crore, while Mahindra Bank is valued at around ₹2.75 trillion.

Rohit Rao, chief communication officer, Kotak Mahindra Group said that “We have no statement to say”.

“The news is completely rumour and considers it malicious, unture and baseless” said The promoter of IndusInd Bank, IndusInd International Holdings Ltd and completely denied this merger.

IndusInd International Holdings Ltd is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora.

In case this proposal occur it will encourage Kotak Bank in retail business as IndusInd Bank has a large, steadily growing retail credit and deposits book.

As per reports IndusInd’s retail lending book is diversified and growing faster as compared to Kotak Mahindra Bank.

The discussion of merger come at that time when the Hinduja family (promoters of IndusInd Bank) are involved in a family conflict , which is being heard at a London court.

In terms of branches Kotak Mahindra Bank has 1600 branches across the country, serving 24 million customers and 2516 ATMs. Whereas IndusInd Bank has nearly 2,000 branches across India, 26 million customers.

In the June quarter IndusInd bank advances grew 2% to ₹1.98 trillion, while deposits grew by 5% to ₹2.11 trillion.

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