Mumbai: Shares of Kotak Mahindra Bank and ING Vysya Bank edged higher Wednesday as the Reserve Bank approved the merger deal between the two companies.
The merger would create the country's fourth largest private sector bank.
Stocks of ING Vysya Bank surged 4.38 percent to end at Rs 976.65 and Kotak Mahindra Bank rose by 3.64 percent to settle at Rs 1,361 on the BSE.
"The scheme of amalgamation (of Kotak Mahindra Bank and ING Vysya Bank) shall come into effect from April 1, 2015," Kotak Mahindra Bank said in a statement quoting RBI approval. It got RBI approval for the merger yesterday.
Following the merger, all the tangible and intangible assets have been transferred to Kotak Mahindra Bank. The merged entity has now 1,214 branches, with a wide-spread pan-India network. ING Vysya had around 10,000 employees, while Kotak Bank has around 29,000.
The Rs 15,000-crore merger deal between Kotak Mahindra and ING Vysya received the Competition Commission's approval in February.
