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