ING Vysya Bank rallies over 17% as ING Groep plans to sell 43% stake

NEW DELHI: ING Vysya Bank Ltd surged as much as 17.45 per cent from its previous close of Rs 509.95 in opening trade on Monday, on reports that ING Groep NV, the biggest Dutch financial-services company, is said to be seeking a buyer for its 43 per cent stake in ING Vysya Bank.

At 09:35 a.m.; the stock pared some of the morning gains and was trading 4.4 per cent higher at Rs 532.50. It has hit a low of Rs 529.50 and a high of Rs 598.95 in trade today.

“ING, which has been selling assets across the Asian region and some in Europe itself to repay the Dutch government for bailing it out from the 2008 credit crisis, may exit the domestic banking business comprising retail, corporate and treasury, to focus on corporate banking, they said,” ET said in a report.

“The group, which also has to bolster capital to meet the Basel III regulations, may get at least $600 million at current market prices, or even more for the stake depending on the transaction,” added the report. However, the report also quoted that there is no certainty that a deal will happen.

The firm has repaid 7.8 billion euros in aid and 2.4 billion euros in interest and premiums, and has pledged to repay the remainder by May 2015. Morgan Stanley is advising ING on the stake sale.