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Banking in Telangana Growing volume of stressed assets… It’s a war on black money, support it. Growing gainfully A new development bank rising in the east… Small is ‘more’ beautiful Big bank merger, bigger expectations Small finance payment banks... Monetary policy continues to adopt dis-inflationary path Drop in SLR- sparing lendable resources Small finance banks offer high interest rates Why any time money? Greet Lakshmi the banking robot Indian customers are tech savvy Ernakulam excels... Payment banks have arrived Bottomlines shrink, bad loans rise... All that glitters is not gold... Lacklustre credit expansion Banking on Risk Capital base of regional rural banks raised Reaching out: is it slowing down? Aadhaar, niraadhaar and banking Just 660 days! Target over-ambitious... Too big to fail and too small to sail The paradox: clamour for the Goliath and David Needed a Banking Atlas One down in private sector Cradle of banks to a smart city... United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Cut in repo rate – lower than expected Banking overhauling or reorganisation? Mega merger is on Managing NPAs... Insatiable appetite for credit Targets continue to be ad hoc A bank for women, by women Reaching the Unreached… Perhaps small is more beautiful than big! Drastic decline in asset quality LVB- A supermarket of financial services From lazy banking to easy banking What is the priority – mergers or NPA reduction? Emerging crisis Merger mania haunts banks New bank licences, at last... Financial inclusion vs unclaimed deposits How okay are new banks? Who is the real beneficiary? Governance in Reverse Gear? Smart banking in smart cities Hesitancy in announcing year-end results Two banks: their jubilees and performances Rationalised A development bank for BRICS Thirty more cities seek to become SMART Bank deposits account for 46.3 per cent of household savings Anytime banking to anywhere banking The collaboration suite of cyber criminals Another route for achieving financial inclusion Stage set for Indian ‘avatar’ of foreign banks Fund healthcare clinics in villages... Well-lived... Ferrying digital banking to Lakshadweep Why priority status? Cautious and considerate Holy or unholy? Nothing much can happen…. Grows Bigger How ‘secure’ are the secured loans? New capitals of Migrant banks Good, bad and ugly
 
One down in private sector

Thanks to the recent proposal for merger of ING Vysya Bank with Kotak Mahindra Bank, the number of banks in the private sector falls by one! During the last 14 years, nine banks of the old generation in the private sector have bowed out through mergers. With this, the number of old generation banks in the private sector has come down to 12. Incidentally nine among them originate from the south: Tamil Nadu-4; Kerala-4; Karnataka-1; and one each in Maharashtra, Uttarakhand and Jammu and Kashmir. The oldest among them is over a hundred years and the youngest, 71 years. In the race for achieving higher growth rates, it is difficult to predict how many of them would be able to maintain their individual identity in future.

The proposed merger is a merger of two efficient banks in the private sector, of which one is of the old generation and the other of the new generation. ING Vysya Bank in its original avatar was Vysya Bank, established in Bengaluru in 1930. It was in existence for 72 years, and in 2002 it became ING Vysya Bank Ltd, when the ING group acquired a majority stake. This bank was very successful in mobilising savings bank deposits and lending to the SME sector. Meanwhile, Kotak Mahindra Finance converted itself into Kotak Mahindra Bank in 2003 and embarked upon a branch expansion programme.  

The board of directors of both the banks have accepted the merger and approvals from the regulating authorities are awaited. The shareholders of ING Vysya Bank would get 725 shares of Kotak Mahindra Bank for 1000 shares held by them. The amalgamated bank would become the fourth biggest bank among the new generation banks in the private sector.

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