Equity Research Weekly Report 24 Nov 2014 By Ways2Capital

INDORE, India - Nov. 26, 2014 - PRLog -- NSE WEEKLY NEWS UPDATE

✍ Mega bank acquisition: Kotak buys ING in all-share deal

In the biggest M&A in the banking sector after the global financial crisis, Kotak Mahindra Bank has agreed to acquire ING Vysya Bank in an all-share deal. The move consolidates Kotak's position as India's fourth largest private bank. At current market prices, the value of the merged entity will be Rs 1,04,734 crore giving Kotak Bank a trillion-rupee valuation within 12 years of incorporation.The merger is subject to regulatory approvals from RBI and other regulators. This will also be the first bank merger to be referred to the Competition Commission of India as per new norms. Among other things, RBI will also have to consider allowing ING Vysya to hold 6.5% in the merged entity as against the less than 5% allowed by RBI for non-promoters.

✍ RBI revises minimum balance norms

The Reserve Bank of India (RBI) has placed curbs on the charges imposed by banks for not maintaining minimum balance requirements. The new norms require banks to notify the customer by SMS, email or letter about the intention to apply penal charges if minimum balance is not restored within a month. Banks have also been barred from the practice of having negative balances in accounts due to imposition of penal charges.

Under the new norms, the board of directors of a bank has to approve the penal charges proposed to be levied for non-maintenance of minimum balance. "The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized," RBI said in a circular to all banks.Although the board of directors has been given the freedom to fix charges, RBI has said that penal charges must be reasonable and not out of line with the average cost of providing the services. The new charges come into effect from April 2015.

✍ Vikram Pandit-led fund invests Rs 540cr in JM Financial’s realty company

Well-known banker Vikram Pandit-led global fund has invested Rs 540 crore in JM Financial's real estate lending subsidiary FICS. Indian-origin Pandit, who was earlier chief of global banking major Citigroup, has also joined the board of FICS as non-executive chairman.

FICS Consultancy Services is the real estate lending arm of JM Financial, which has also provided additional capital of Rs 360 crore, taking the total capital commitment for FICS to Rs 900 crore. While Pandit has joined the FICS board as its non-executive chairman, Vishal Kampani and Hari Aiyar have become non-executive vice-chairmen in the company. V P Shetty would continue to be a director on the board. agencies

✍ Jignesh Shah resigns as FTIL’s MD

Jignesh Shah, the founder and promoter of Financial Technologies (FTIL), on Thursday quit as the managing director & chief executive officer (MD & CEO) of the company.

Shah will be replaced by Prashant Desai, who was the president (investor relations and M&A) of the company. Shah's resignation came in the wake of the Rs 5,600-crore NSEL scam. The government is now considering a proposal to merge NSEL, the crisis hit spot exchange, with FTIL against which the company has moved the Bombay high court.

✍ IndiaBulls buys India Land IT Park for Rs 600 cr

Reflecting the appetite for quality IT space in the city, Indiabulls has acquired India Land Tech Park in Ambattur for Rs 600 crore. The park will be renamed as One Indiabulls Park. The 2.4 million sq ft IT park with a leasable area of 2 million sq ft and 10 acres of land has gone at a conservative Rs 3,000 per sq ft. Taking into account the present construction cost of IT parks in the city, the buyer has got the land virtually free, said a realty consultan


Essar Oil plans to buy back 137 million shares, or 27.5% stake, held by the public.

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