Kotak Mahindra-ING Vysya merger gets RBI approval

The merger deal between Kotak Mahindra Bank and ING Vysya Bank, which would create the country's fourth largest private sector lender, received the Reserve Bank of India's (RBI) approval on Tuesday.

"The scheme of amalgamation (of Kotak Mahindra Bank and ING Vysya Bank) shall come into effect from April 1, 2015," Kotak Mahindra Bank said in a statement quoting RBI approval.

Following the merger, all the tangible and intangible assets have been transferred to Kotak Mahindra Bank. The merged entity now has 1,214 branches, with a wide-spread pan-India network.

ING Vysya had around 10,000 employees, while Kotak Mahindra has around 29,000. The merger deal, valued at Rs 15,000 crore, received the Competition Commission of India's (CCI) approval in February.

In an order dated February 12, the fair trade regulator said that share of both entities in various relevant markets was insignificant. In this case, CCI took into account multiple relevant markets including those for deposits, home loans, agricultural banking and card business.