ING
Vysya has sold its stake in Bharat Overseas Bank. ING
Vysya Bank held 23.1 lakh shares, representing a 14.6
per cent in the bank. The deal was struck at Rs155 a share,
fetching ING Vysya Bank Rs36 crore, reports CNBC-TV18.
The
buyer is likely to be Indian Overseas Bank, which already
holds 30 per cent in Bharat Overseas Bank. Other banks
that hold a stake in Bharat Overseas Bank include Bank
of Rajasthan with 16 per cent, Federal Bank with over
10 per cent, Karur Vysya Bank and South Indian Bank with
10 per cent each, and Karnataka Bank with nearly 9 per
cent.
Earlier
this year, IOB entered into an agreement with these six
banks to buy out their stakes for Rs155 a share; that's
Rs170 crore to take over its operations. After the stake
sale, Bharat Overseas Bank would be a wholly owned subsidiary
of IOB initially.
With
this synergy, IOB would get 102 BhOB branches, which would
be of strategic importance to IOB. IOB is also eyeing
BhOB's operations in Bangkok.
The
total assets of IOB stand at Rs50,815 crore versus Rs3,214.4
crore of BhOB. The net NPA of IOB stands at 0.48 per cent
versus 1.87 per cent of BhOB. The Capital Adequacy Ratio
of IOB is at 13.37 per cent versus 11.24 per cent of BhOB.
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