Kotak Bank vs ING vyasya- amalgamation (merger)
Post on 20-Mar-2017
109 Views
Preview:
Transcript
KOTAK BANK ING VYSYA BANK AMALGAMATION
• Established in 1985: KOTAK MAHINDRA GROUP
• February 2003: Kotak Mahindra Finance Ltd. (KMFL)
• The first non-banking finance company - Kotak Mahindra Bank Limited
• Services: Retail and Corporate (Consumer Banking Service, Commercial Banking Services, Investment Banking Services, etc.)
• 15 subsidiaries across India
• Listed: BSE, NSE & LSE
Shareholding in Kotak before the Merger
40.02%
59.98%
Promoter Group Public Shareholdings
• Established in 1930s: “VYSYA Bank”- Supporting Trade Community in South India
• During 2002: First Indian bank merged With Dutch banking giant ING Group
• Services: Retail, Private And Wholesale Banking Services
• Listed: BSE & NSE
Shareholding in ING Vysya before the Merger
42.51%
57.49%
Promoter Group Public Shareholding
40.02%
59.98%
Promoter Group Public Shareholdings
42.51%
57.49%
Promoter Group Public Shareholding
Share Swap725 : 1000
Pre- Merger
Post- Merger
33.99%
59.53%
6.48%
Promoter holdingPubli HoldingING Group
Reasons for MergerIncrease in Branch network
Region Kotak ING Vysya Merged Entity
West 46% 12% 30%
North 34% 20% 27%
South 15% 64% 38%
East 5% 4% 5%
Customer Base
Particular Kotak ING Vysya Merged Entity
Total Number of Branches 641 573 1214ATMs 1159 635 1794
• Access to International business
• Thrust to SME business: ING Vysya Bank (38%), Kotak bank (8%)
Reasons for MergerDeposits & Advances (Rs. In Crore)
Kotak ING Vysya
Advances 81,418 39,558
Deposits 66,311 44,652
2011 2012 2013 2014 20150
10000
20000
30000
40000
50000
60000
3259 3603 4753 5759 75263330 5050 7268 1008714031
746413241
1650622543
29215
KOTAK
CA SA TS
Deposit Trends
2011 2012 2013 2014 20150
5000100001500020000250003000035000400004500050000
5100 6400 7300 7000 73005400 5600 6100 6800 7300
1970023100
27900 275003130000
ING Vysya
CA SA TS
Source: Kotak Mahindra Annual Report (2014-15)
• Capital Adequacy Ratio: The individual CAR for FY stood at 18.9% and 16.76% for FY 2014 and this ratio was expected to be 17.6% after the merger
• Saving on infrastructure overlapping
Key Financials(a) Asset Quality (b) Shareholders’ Returns
Stock Price & RSI
Stock Price & RSI
top related