Acquiring ING Vysya Bank may strategically fill many gaps for Kotak Mahindra Bank, Nomura says in a report.
Kotak is close to acquiring ING Vysya bank, a business news channel reported on Wednesday.
Exchanges have asked ING Vysya Bank to clarify the media report.
Both banks have low geographical overlap, similar liability mix, Nomura says, adding it will provide Kotak with an SME banking platform.
Nomura says potential acquisition will also help Kotak comply with RBI's deadline on reducing promoter's stake.
Will be incrementally positive on Kotak if deal happens at valuations which are 10 per cent accretive to earnings/networth, it says.
Nomura currently has a "neutral" rating on Kotak.
As of 9.52 a.m. Kotak Mahindra Bank shares traded 7.11 per cent higher at Rs 1,154.15 apiece, outperforming the Nifty which was down 0.1 per cent.
Copyright: Thomson Reuters 2014
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