Kotak Mahindra Bank seeks to buy govt stake in Axis Bank: Reports

Kotak Mahindra Bank has approached the government seeking to buy a stake in Axis Bank, reported a news channel. The report also mentioned that following Kotak, other large private sector banks including ICICI Bank and HDFC Bank have also showed interest in buying into Axis Bank.

Kotak Mahindra Bank has approached the government, seeking to buy a stake in Axis Bank, a news channel reported. The report also mentioned that following Kotak, other large private sector banks including ICICI Bank and HDFC Bank have also showed interest in buying into Axis Bank.

Uday Kotak promoted Kotak Mahindra Bank has reportedly sought to buy the government’s stake in Axis Bank. (Arijit Sen/HT PHOTO)

The government indirectly holds stake in Axis Bank through public sector insurance companies and SUUTI (Specified Undertaking of Unit Trust of India).

The Specified Undertaking of Unit Trust of India (SUUTI) holds about 12% stake in Axis Bank while LIC has 14.49% holding in the bank.

Remaining promoter category stake is with four PSU general insurance companies and one state-owned re-insurer GIC Re.

Earlier this week, Axis Bank had clarified that “in light of repeated reports appearing in some sections of the media, we reiterate that the said news (the Axis-Kotak merger) is baseless and unsubstantiated.”

In 2015, Kotak Mahindra Bank completed acquisition of mid-sized private sector ING Vysya Bank for about Rs 15,000 crore. The deal was touted as India’s biggest bank merger.

The merger catapulted the nation’s fourth largest private bank to nearly Rs 2 lakh crore balance-sheet size entity.

Following this news Axis Bank ended the day’s trade at 3.94% up with the share price at Rs 524.20.