Time right for Kotak to buy Axis Bank: Nomura

Time right for Kotak to buy Axis Bank: Nomura

FPJ BureauUpdated: Wednesday, May 29, 2019, 10:52 PM IST
article-image

New Delhi : Now is the best chance for Kotak Mahindra Bank to acquire Axis Bank, one of the largest liability and retail franchise, brokerage firm Nomura Financial Advisory Services said in a report on Tuesday.

The brokerage’s observation comes in the aftermath of Axis Bank’s board cutting short its CEO Shikha Sharma’s fourth term to the end of 2018 after the Reserve Bank of India reportedly did not approve her re-appointment. “With a very short time left in the CEO’s term at Axis Bank, RBI’s pressure on Axis Bank’s management and with an asset quality clean-up exercise continuing, we believe this is the best opportunity for Kotak Bank to acquire or merge with Axis Bank,” the brokerage said. The deal if explored could make the combined entity the second largest private bank in India in terms of advances and largest in terms of branches. Nomura Financial Advisory Services expects little backlash from Axis Bank if Kotak Mahindra Bank expressed an interest in acquiring it given the loss of confidence of the regulator and a vacuum at top management.

Axis Bank scrips up 5%

NEW DELHI: Shares of Axis Bank on Tuesday surged over 5 per cent, adding Rs 7,212 crore to its market cap, a day after its CEO and MD Shikha Sharma’s tenure was shortened. The stock rose 5.43 per cent to end at Rs 546 on BSE. At NSE, shares soared 5.17 per cent to Rs 546.15.

RECENT STORIES

MGNREGA Wage Surge: Centre Announces 3-10% Wage Increase For Rural Workers; Haryana Tops At...

MGNREGA Wage Surge: Centre Announces 3-10% Wage Increase For Rural Workers; Haryana Tops At...

Banks To Stay Open On Sunday: Upon Government Request, RBI Asks Lenders To Function On March 31

Banks To Stay Open On Sunday: Upon Government Request, RBI Asks Lenders  To Function On March 31

Stock Market News: Indian Indices To Remain Shut Today On Account Of Good Friday

Stock Market News: Indian Indices To Remain Shut Today On Account Of Good Friday

How Does SIP Help You Create Wealth in the Long Term?

How Does SIP Help You Create Wealth in the Long Term?

The Disruptive Potential of AI in Stock Market Trading: Rohan Menon's Perspective

The Disruptive Potential of AI in Stock Market Trading: Rohan Menon's Perspective