(MENAFN- KNN India) The long awaited shake up in the Banking sector to build large global scale Bank has started. Uday Kotak, Executive Vice-Chairman and Managing Director of Kotak Group, announced the news of the merger of ING Vysya Bank with Kotak Mahindra Bank on Twitter.
"Happy to share that RBI has approved merger of ING Vysya Bank with Kotak Mahindra Bank effective April 1, 2015," Kotak posted on the micro blogging website early morning today.
After the RBI approval, the merged entity will have to await approval from the Competition Commission of India to become operational.
In November last year, Kotak Bank had announced it was acquiring Bengalaru-headquartered ING Vysya Bank in an all-stock deal of over Rs. 15,000 crore ($2.4 billion).
The deal will make Kotak the fourth-largest private bank in the country in terms of total business.
There may be further acquisition and mergers in line, particularly merger of the State Bank subsidiaries with the mother Bank to make a bank of global size.
In the Gyan Sangam, or the banker's retreat organised in Pune January, 2015, the government said the decision for the consolidation will be with the bank board However, it is only a matter of time before the government nudges the banks to move on path of consolidation as it is in favour of creating big well-run global banks.
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