Kotak bank explores bid to take over IndusInd

Kotak Mahindra Bank Ltd is exploring a possible takeover of smaller rival IndusInd Bank Ltd, mentioned two folks conscious of the event. If such a deal is clinched, it may considerably broaden Kotak Mahindra’s presence within the Indian banking sector, notably within the retail section.

The promoters of Kotak Mahindra and their counterparts in IndusInd Bank have engaged in discussions for the merger by way of a share swap, mentioned one of many two folks cited above, requesting anonymity because the talks are personal.

To be certain, the 2 sides are nonetheless in exploratory talks, and no determination has been taken.

Kotak Mahindra Bank has a market cap of Rs 2.75 lakh crore, whereas IndusInd Bank is valued at round Rs 50,000 crore.

“We have no comments to offer,” mentioned Rohit Rao, chief communication officer, Kotak Mahindra Group.

“The promoter of IndusInd Bank, IndusInd International Holdings Ltd, completely denies the said rumour and considers it malicious, untrue and baseless. IIHL is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always,” the promoters of IndusInd Bank mentioned in response to a question.”The promoter reaffirms its unstinted assist to IndusInd Bank.” The proposed merger will assist Kotak bolster its retail enterprise as IndusInd Bank has a big, steadily rising retail credit score and deposits e book.

IndusInd’s retail lending e book is diversified and rising quicker than that of Kotak Mahindra Bank, the primary individual cited above mentioned.

The merger discussions come at a time when the promoters of IndusInd Bank, the Hinduja household, are entangled in a household dispute, which is being heard at a London court docket.

In September, IndusInd Bank raised Rs 3,288 crore by way of a preferential allotment to the promoters and different traders.