Kotak Mahindra Bank Ltd's proposed acquisition of ING Vysya Bank Ltd through an all-stock merger has received approvals from the shareholders of the two firms in separate extraordinary general meetings held on Wednesday.
The two lenders will now seek approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), among others, to make the merged entity operational, the banks said in separate press releases.
While Kotak Mahindra Bank received approval from 99 per cent of the voting public shareholders, ING Vysya got 89 per cent of the shareholders' approval for the proposed merger.
In November, Kotak Mahindra Bank and ING Vysya announced a deal worth over $2.4 billion.
The deal is the first significant M&A in the banking sector since 2010, when ICICI Bank snapped Bank of Rajasthan, and the second-biggest ever in the sector.
Under the deal, shareholders of ING Vysya will get shares of Kotak Mahindra Bank as per the swap ratio of 725 shares of Kotak for every 1,000 shares held by them in ING Vysya.
The merged firm would have 1,214 branches, 1,794 ATMs, 39,811 employees, total income (based on FY14 numbers) of Rs 13,576 crore and PAT of Rs 3,123 crore; total asset of Rs 1,98,983 crore with advances of Rs 1,20,976 crore and deposits worth Rs 1,10,963 crore.
With this, Kotak would consolidate its position as the fourth-largest private lender in the country, behind ICICI Bank, HDFC Bank and Axis Bank.
However, employees and officers of ING Vysya Bank had expressed concerns over job security after the proposed merger. They had gone on a one-day strike on Wednesday coinciding with a cross-industry strike called by one of the banking employee unions.
Shares of Kotak Mahindra Bank and ING Vysya Bank rose over 2 per cent each in mid-day trading in a strong Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)