Is Kotak and IndusInd merger for real?
Now reports suggest that Kotak Mahindra bank is looking at an all-stock deal to buy the Indusind Bank, even though there is a vehement denial coming in from the promoters of IndusInd Bank that is Hinduja group. It makes for a strong case there is complementarity when it comes to both Kotak and IndusInd Bank.
IndusInd Bank a few months back had reported, is looking for a strategic investor. Reserve Bank Of India (RBI) had not yet cleared their application for 26 stakes in the company. On the other hand, You have to look at the family dispute which came in as a trigger which could lead to a final transaction for Kotak.
They have been looking at a big acquisition for growth for the past many years. We also have Kota Mahindra Bank’s second-quarter earnings today.
Kotak Mahindra Bank had gone cautious on loan growth over the last two to three quarters. The low-cost deposit momentum that is expected to remain strong last time it was at a 56.7 percent ratio.
The net interest margin could decline because they are carrying excess liquidity on the balance sheet. Last time it was at 4.4%.
On the other hand, the other contingent provisions to increase or strengthen the balance sheet subsidiaries like Kotak securities.
About Kotak Mahindra Bank, provides a high rate of interest savings accounts, very low-interest personal credit, and charge cards together with attractive deals. Kotak Securities provides online trading together with features like stock tips, live chat marketplace upgrades & trading. The business was established in 2001. It suits 15 million clients and it has 232 branches in approximately 167 towns and cities in India together with 99,275 agents. SME Private banks like IndusInd Bank provide a large assortment of private banking services including loans, cards, insurance to fulfill your personal preferences.
About today’s stock market market, US Elections is only a week away, anything is possible. First RBI Governor tested Positive, Amazon Getting relief from Singapore court on RIL- Future Deal, Interest Waiver Implementation, Kotak & IndusInd Merger, Plenty of results to stream this week with RIL announcing on Friday article Marketplace. So with these & some more, it is will be big boys play with a lot of volatility.