Buying cos an objective of recent capital-raising move: Kotak Mahindra Bank amid IndusInd Bank merger buzz

There were reports of KMB exploring an all-stock merger with IndusInd Bank late Sunday evening.

Published: 26th October 2020 07:46 PM  |   Last Updated: 26th October 2020 07:46 PM   |  A+A-

Kotak Mahindra Bank managing director Uday Kotak| PTI


MUMBAI: Kotak Mahindra Bank (KMB) on Monday said that acquiring companies and assets was one of the objectives of a recently-concluded capital raising exercise, and did not deny reports of the lender looking for a merger with smaller rival IndusInd Bank.

KMB will chase the right opportunity and use the money "judiciously", its group chief financial officer Jaimin Bhatt told reporters.

There were reports of KMB exploring an all-stock merger with IndusInd Bank late Sunday evening.

The reports were denied by Indusind Bank and its promoters as well.

"As a matter of policy, we will not talk about any specific examples. As a matter of clear company policy, we will not comment on any speculation and whenever there is something to report, we will get back to you," Bhatt said.

When asked if it will explore the merger and acquisition route, he pointed to Rs 7,000 crore raised by it earlier this year soon after the COVID-19 pandemic hit the country to affirm the lender's interest in such deals.

"When we raised capital in Q1, we did talk about the fact that we will look at acquisitions whether it is companies, assets, what not. So, I am not saying a no to any of that growth avenues but certainly not on this one (IndusInd)," Bhatt said.

To a question on how it plans to deploy the high capital, Bhatt said the bank will seek the "right opportunity".

"Having capital is a cushion but we will use it judiciously," he emphasised.

KMB reported an overall capital adequacy of over 23 per cent as against the required level of under 10 per cent.

Deal activity among private sector banks is very rare and the last merger was in 2014, when KMB had acquired ING Vysya Bank.

According to the media reports, a merger with KMB will help it on the retail front.

KMB scrip gained 2.36 per cent to close at Rs 1,415.75 a piece on the BSE while the IndusInd Bank share was up 1.46 per cent to Rs 616.30 a piece, as against 1.33 per cent fall in the benchmark.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp