Private sector Kotak Mahindra Bank has received its shareholders nod for merger of Bengalaru-headquartered ING Vysya Bank with itself.
It was approved by the 99.30 per cent in number representing 99.93 per cent in value of the shareholders present.
This approval is considered as important step for merging of two banks to form new entity. Now this merger is subject to the final approval from Reserve Bank of India (RBI), Competition Commission of India (CCI) and such other approvals.
In November 2014, Kotak Mahindra Bank had announced that it is acquiring ING Vysya Bank in an all-stock deal.
This merger will make Kotak the fourth-largest private bank in India in terms of total business. The biggest three private banks are ICICI Bank, HDFC Bank and Axis Bank.
The management of these banks are expecting that the new merged entity will be operational by April 1, 2015.
The acquisition will help Kotak Mahindra Bank to widen its reach in South Indian market and also help in acquiring SME customers as ING Vysya Bank was having stronghold in SME customers.
After merger the combined banking entity will have a widespread network of 1,214 branches across pan India.