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ICICI Bank in talks with Vysya Bank, Federal Bank for merger : The Financial Express
A new round of consolidation in the banking sector is round the corner with major private banks like ICICI Bank and HDFC Bank understood to be in advanced talks with different banks, both in the private sector and public sector, for mergers.
A new round of consolidation in the banking sector is round the corner with major private banks like ICICI Bank and HDFC Bank understood to be in advanced talks with different banks, both in the private sector and public sector, for mergers.
According to sources, ICICI Bank is understood to have initiated talks with the Bangalore-based Vysya Bank for a possible merger.
ICICI Bank has also initiated talks with the Kerala-based Federal Bank for similar purpose. Although a faxed query to these banks did not elicit any response, officials, speaking on condition of anonymity, maintained that due-diligence exercises to this effect have already been done. Another leading private bank, HDFC Bank is also learnt to be in talks with three other banks namely Bank of Punjab, Global Trust Bank, and UTI Bank for a possible merger.
Top HDFC Bank officials said: “Merchant bankers appointed by various banks have approached us, but we are yet to firm up our plans.” Sources also added that it makes eminent sense for HDFC Bank to look at acquisitions since it has cash at the moment and has always been open to the idea of growing inorganically. In this case too, due diligence with different parties is underway, said the sources.
Likewise, IndusInd Bank is also on look-out for a strategic partner to divest 10-15 per cent of the promoter’s stake in the bank. This is also true in the case of UTI bank and IDBI bank. Analysts added that for banks like IndusInd Bank, UTI Bank and IDBI Bank, the entry of a strategic partner would also help in complying with the Reserve Bank of India’s (RBI) stipulation to reduce their respective promoters’ stake.
According to sources, ICICI Bank is understood to have initiated talks with the Bangalore-based Vysya Bank for a possible merger.
ICICI Bank has also initiated talks with the Kerala-based Federal Bank for similar purpose. Although a faxed query to these banks did not elicit any response, officials, speaking on condition of anonymity, maintained that due-diligence exercises to this effect have already been done. Another leading private bank, HDFC Bank is also learnt to be in talks with three other banks namely Bank of Punjab, Global Trust Bank, and UTI Bank for a possible merger.
Top HDFC Bank officials said: “Merchant bankers appointed by various banks have approached us, but we are yet to firm up our plans.” Sources also added that it makes eminent sense for HDFC Bank to look at acquisitions since it has cash at the moment and has always been open to the idea of growing inorganically. In this case too, due diligence with different parties is underway, said the sources.
Likewise, IndusInd Bank is also on look-out for a strategic partner to divest 10-15 per cent of the promoter’s stake in the bank. This is also true in the case of UTI bank and IDBI bank. Analysts added that for banks like IndusInd Bank, UTI Bank and IDBI Bank, the entry of a strategic partner would also help in complying with the Reserve Bank of India’s (RBI) stipulation to reduce their respective promoters’ stake.