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