Sumitomo Mitsui Intention To Invest Rs 1,366 Crore For 4.5% Stake In Kotak Mahindra Bank
Sumitomo Mitsui Banking Corporation reported that it intends to invest Rs 1,366 crore in an investment for the acquisition of a 4.5% stake in Kotak Mahindra Bank.
- (1888PressRelease) July 07, 2010 - Sumitomo Mitsui Banking Corporation (SMBC), a Japanese bank, reported that it intends to invest Rs 1,366 crore in an investment for the acquisition of a 4.5% stake in Kotak Mahindra Bank (KMB), the Indian private sector lender. Kotak agreed on an investment deal that will see it sell 164 million shares at 833 Indian Rupees per share, totaling to Rs 1,366 crore to Sumitomo Mitsui Banking Corporation, read a statement by Kotak Bank filled to the Bombay Stock Exchange.
The deal with the Japanese bank comes in the wake of ING, the Dutch financial services company's exit from Kotak through a sale of its 3% stake for 8.011 billion Indian Rupees. Kotak's shares, India's fourth biggest private sector lender, went up by 3.52% to a high of 746.65 Indian rupees.
Kotak Bank chairman, Uday Kotak, said in a statement the bank was pleased to welcome a reputed and large global financial institution of the stature of SMBC as its shareholder, as the Indian financial services industry continues its high growth curve. The deal will see the corporation cover a variety of mutual interest businesses such as asset management, alternate assets, investment banking and wholesale banking, read the statement. For more information about investments in Indian banking sector, visit http://www.investinindia.com/industry/banking.
The deal will be concluded in September 2010 and according to Kotak, the two banks plan on leveraging their strengths in order to serve the Indo-Japan corridor across a range of financial services. At the end of 2010's first quarter, ended 31st March, Kotak Bank and its group of companies had 1,716 outlets and consolidated total assets of 550 billion Indian rupees, the Japanese Bank said in a statement.
In the same first 2010 first quarter, KMB's consolidated net profit rose 100% to Rs 1,307 crore, while the loan book stood at close to $6 billion, with most of the lending directed to retail customers. SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group with over $1 trillion worth of assets.
SMBC, which is a core financial institution of the Sumitomo Mitsui Financial Group, is the second-largest banking group in terms of market cap in Japan with approximately $1.37 trillion of total assets and $3.02 billion of net profit as of March 31, 2010. SMBC is engaged in the business of providing financial services by itself, and through its affiliates and group companies, spanning commercial, retail and wholesale banking, securities businesses, asset management, project finance, consumer finance and credit card services.
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam