Kotak Mahindra Bank, ING Vysya gain over 7% on merger buzz

MUMBAI: Shares of Kotak Mahindra Bank and ING Vysya Bank surged over seven per cent today amid merger reports.

Kotak Mahindra Bank surged 7.28 per cent to settle at Rs 1,157.05 on the BSE. In intra-day session, shares of Kotak jumped 7.89 per cent to touch its one-year high of Rs 1,163.70.

Similar buying was seen at ING Vysya Bank counter whose shares rallied 7.15 per cent to end at Rs 814.20. During the day, it zoomed 13.81 per cent to Rs 864.80 -- its 52-week high.

Stock exchanges have sought clarification from Kotak Mahindra Bank and ING Vysya Bank about a news report that claimed a merger between the two is on the cards.

In a filing to the BSE today, ING Vysya Bank said, "The company will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company."

Meanwhile, Kotak's reply is awaited. As per media reports, Kotak Mahindra Bank is in final stages to acquire ING Vysya Bank in a ratio of 2:2.5 and the deal values ING Vysya Bank at Rs 16,500 crore.