Kotak Mahindra Bank’s acquisition of ING Vysya Bank is the country’s first ever amalgamation of a profit earning entity post the global financial meltdown in 2008.
Although two more mergers took place during this period but those were under different circumstances.
In 2010, Bank of Rajasthan was merged with country’s largest private sector lender ICICI Bank. Bank of Rajasthan was a loss making entity and its net worth had turned negative.
A subsidiary of SBI, State Bank of Indore was merged with the parent in the same year. This was in continuation of the proposed policy of amalgamation of its subsidiaries over a period.
SBI had merged State Bank of Saurashtra in August, 2008, just a month before global meltdown was triggered by Lehman Brothers going kaput.
Prior to 2008, the other significant mergers that took place include HDFC Bank acquiring Centurion Bank of Punjab in 2008 and IDBI Bank acquiring United Western Bank in 2006.
