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