We wish to clarify categorically that the news report of a merger between Federal Bank and another private bank is speculative in nature, Federal Bank said in an exchange filing
Kotak Mahindra Bank-Federal Bank Merger: Private sector lender Federal Bank on Monday, September 5, denied reports of a merger with Kotak Mahindra Bank, after reports emerged that the two banks were in talks to do so. Federal Bank in a statement said it was clarifying “categorically” that the report was speculative in nature and there was no such information available with the company as of the date.
“We wish to clarify categorically that the news report of a merger between Federal Bank and another private bank is speculative in nature. In this regard, we would like to state that there is no information available with the Company as of today, which is required to be reported under extant SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and which may have a bearing on the stock price of the Company,” Federal Bank said in a filing with the NSE and BSE on Monday.
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“We wish to assure you that the Company is committed to complying with the SEB (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), and any information likely to have a bearing on Company shares will be disclosed to the Stock Exchanges in compliance with the Listing Regulations,” it said.
On the other hand, Kotak Mahindra Bank declined to comment on the matter.
Earlier in the day, a report claimed that private lenders Kotak Mahindra Bank and Federal Bank are likely to go for a merger. As reported by CNBC Awaz, it was said quoting sources that Federal Bank was looking to merge with larger banks.
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The report said that Federal Bank was in preliminary talk with Kotak Bank for potential merger deal. The top management is likely to have met for the potential deal, it said.
Shares of the Federal Bank saw a steep surge after the news report emerged. The bank’s stock rose nearly 7 per cent to trade at Rs 127.45 a share.
Federal Bank reported a 63.5 per cent increase in net profit in the April-June quarter of FY23 at Rs 600.66 crore for, as against Rs 367.29 crore in the same quarter last year. This was the highest ever quarterly profit reported by the lender.
Net Interest Income increased from Rs 1,418 crore to Rs 1,605 crore registering a growth of 13 per cent as on June 30 2022. Net Interest Margin stood at 3.22 per cent for FY23.
Federal Bank ) is a leading Indian private sector bank with a network of around 1,300 banking outlets and 1,886 ATMs/ Recyclers spread across the country.
