Kotak Mahindra Bank-Federal Bank MergerPrivate sector lender Federal Bank on Monday, September 5, denied reports of merger with Kotak Mahindra Bank, after reports emerged that the two banks were in talks to do so. Federal Bank said in a statement that it was “clarifying” that the report was speculative in nature and that the company had no such information available.
“We would like to categorically clarify that the news report of the merger between Federal Bank and another private bank is speculative in nature. In this regard, we would like to state that as on date, there is no information available with the Company which needs to be reported under the extant SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, and which may have an effect on The stock price of the company,” the Federal Bank said in a filing with the NSE and BSE on Monday.
“We would like to assure you that the Company is committed to comply with the SEB (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), and any information having a bearing on the Company’s shares will be disclosed on the stock exchanges Compliance with Listing Regulations,” it said.
Kotak Mahindra Bank, on the other hand, declined to comment on the matter.
Earlier in the day, a report claimed that private lender Kotak Mahindra Bank and Federal Bank are likely to go for merger. According to a CNBC Awaaz report, sources were quoted as saying that Federal Bank is looking to merge with larger banks.
The report said that Federal Bank was in preliminary talks with Kotak Bank for a possible merger deal. The top management is likely to meet for a possible deal.
Federal Bank shares saw a huge jump after the news report surfaced. The bank’s stock was trading at Rs 127.45 per share, up about 7 per cent.
Federal Bank reported a growth of 63.5 per cent at Rs 600.66 crore in the April-June quarter of FY 2013 as against Rs 367.29 crore in the same quarter last year. This was the highest ever quarterly profit reported by the lender.
Net interest income increased from Rs 1,418 crore to Rs 1,605 crore as on June 30, 2022, registering a growth of 13 per cent. The net interest margin for FY23 stood at 3.22 per cent.
Federal Bank) is a leading Indian private sector bank with a network of approximately 1,300 banking outlets and 1,886 ATMs/recyclers spread across the country.
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