Kotak Mahindra Bank may buy IndusInd Bank: Kotak Mahindra Bank and IndusInd Bank of the private sector may acquire the company. According to a report, Bloomberg said that Kotak Mahindra Bank may acquire the entire stock. Also, Bloomberg said that the discussion of selling it came to light only after a dispute between four brothers of a Hinduja family living in the UK.
Kotak Mahindra Bank
Bank CEO Uday Kotak is eyeing options to buy the entire stock. Uday Kotak and the Hinduja family have already had an initial conversation on this proposal. The founders of IndusInd Bank can retain its stake in the bank.
At present, promoters of IndusInd hold less than 15% stake in IndusInd Bank. The remaining 85 percent is held by wholesale institutional investors. Apart from this, the market cap of the bank is close to Rs 46,000 crore.
If these two banks merge, a banking deal will be struck between Kotak and IndusInd Bank as Kotak Bank has strong capital and good assets in the market at the moment. Uday Kotak, the promoter of Kotak Mahindra Bank, has fallen by almost 26 percent after selling shares worth Rs 7,442 crore amid lockdown.