Under the terms of proposed transaction, all Vysya branches and employees will join Kotak, and its shareholders will receive 725 shares in Kotak for 1000 Vysya shares at the approved share exchange (swap) ratio.
One of ING Vysya’s directors will also join the Board of Directors of Kotak.
Kotak has 641 branches and relatively deeper presence in the West and North India, while ING Vysya has a national branch network of 573 branches and a deep presence in South India.
The combined entity will have 1,214 branches, and a wide-spread pan-India network.
Kotak Mahindra Bank executive vice chairman and managing director Uday Kotak said: "The opportunities and synergies that this merger will create will place Kotak and its incoming stakeholders from ING Vysya on a new trajectory of excellence and leadership."
ING Vysya Bank managing director and chief executive officer Shailendra Bhandari said: "Our customers will see tremendous value from the combined entity as we fill the gaps, in terms of a much larger footprint and a complete product suite, both national and international."
The merger would decrease ING Vysya’s parent company, ING Group’s stake from existing 43% to about 7%.
Subject to customary regulatory approvals and to approval of the shareholders of Kotak and Vysya, the transaction is expected to close in the second half of 2015.
