Shareholders of Mumbai based private sector Kotak Mahindra Bank approved the merger with ING Vysya Bank with a share exchange ratio of 725:1000. Now Kotak Mahindra Bank is the fourth-largest private sector bank in India. ING Vysya Bank’s shareholders, too, had approved the merger proposal.
The top management of Kotak Mahindra Bank and ING Vysya Bank had made the merger announcement on November for Rs.15,000 crore. The combined banking entity will have 1,214 branches in India.
The merger needs regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India. The management of the banks expect the new entity to be operational by April 1, 2015.