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Kotak identifies possible IndusInd Bank acquisitions

Kotak

Two people are conscious of the growth, Kotak Mahindra Bank Ltd is investigating a potential acquisition of smaller rival IndusInd Bank Ltd. Kotak Mahindra’s promoters and their IndusInd Bank counterparts have been negotiating the merger using an equality swap, one of the two abovementioned people said asking for anonymity because the negotiations are private.  The bank’s Kotak Mahindra is priced at about Rs. 50,000 crore, with a market cap of Rs. 2,75 trillion.

Kotak

IndusInd Bank boosted the Rs3,288 in September by offering the sponsors and other investors a preferential allocation. The Bank’s promoters hoped to obtain the Reserve Bank of India’s permission to raise its stakes in the Bank to 26%, but the regulator was not clearing up the plan. In connexion with non-performing loans, the IndusInd made a provision for an Rs. 2,566 crore of which covid-19 provisions were Rs. 1,203 crore during the duration of June.

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Consequently, the first-quarter profit of the bank declined 64% from one year earlier to Rs 510 crore. The corporate loan book of IndusInd at the end of June was Rs. 83,986 crores (42% of the total advances). With advances of Rs. 1.14 billion, or 58% of overall progress, the Bank’s consumer financial book was remaining.

Kotak

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The retail lending book of IndusInd is diverse and more rapid than the one of the Kotak Mahindra Bank. The first person mentioned above. The fusion talks are held when IndusInd Bank’s founders, the Hindujas. They are embroiled in a family dispute, which is heard in a courtroom in London. In September, IndusInd Bank raised Rs 3,288 crore to developers and other investors through a preferential allocation.

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Diksha Kumari

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