As per news source, Kotak Mahindra Bank is planning for a takeover of IndusInd Bank. This take over will create the nation's eighth-largest financial firm by assets.
The founder and CEO of Kotak Mahindra, Uday Kotak is keen for an all-stock acquisition, said a source. The initial talks between Uday Kotak and the Hinduja family over the proposal held in which the founders of IndusInd Bank could retain a stake in the lender after a deal, another source said.
A deal will enhance the position of Kotak Mahindra as one of India's leading private banks, boosting its assets by about 83%. This deal will also revive the IndusInd Bank, which has seen its market value drop 60% to $6 billion this year after being hit by concerns over worsening asset quality and an erosion of low-cost deposits. Kotak in 2014 acquired the local unit of ING Groep NV for 150 billion rupees ($2 billion) in the largest takeover of a lender in India.
Deliberations are at an early stage and talks could fall through, the people said.
The U.K.-based Hinduja family began discussions for selling control of the Mumbai-based lender following a dispute between the four brothers over the future of the family's $11.2 billion fortune, one of the people said.
Kotak Mahindra's 2.7 trillion rupee market capitalization makes it India's third-largest lender by value.
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