Kotak Mahindra Bank is trading 0.6% down at Rs 854, after having opening at Rs 864.10 and edging up slightly, with investors looking ahead to the bank's promoter, Vice Chairman & MD Uday Kotak's press meet scheduled for this evening.
It is widely expected that Uday Kotak will announce a big acquisition this evening. It is speculated that the bank might acquire Axis Bank.
There are also speculations that Kotak Bank might look at buying a big stake or acquiring a microfinance firm. According to some reports, Kotak may look at buying a stake in M&M Financial Services or Shriram Transport Finance. Manappuram Finance and South Indian Bank are also speculated to be in the radar.
Kotak Bank, which has solid liquidity, has convened a board meeting on Thursday (March 30) to raise funds, adding credence to the news that it might look to acquire a major stake or make a buy-out pretty soon.
According to a filing by the bank with the stock exchanges, the board will decide on raising of equity capital through rights issue, private placement, follow-on public offer, qualified institutional placement, GDR, ADR or through any other permissible mode.
Considering the fact that Uday Kotak had said in a recent interview that the Indian market needs to see some hostile takeovers, it won't be surprising if he comes out with a big announcement on this front later in the day.
Kotak Mahindra Bank posted a net profit of Rs 879.76 crore in the quarter ended December 31, 2016 as compared to Rs 634.72 crore in the quarter ended December 31, 2015. Total income increased from Rs 4843.86 crore for the quarter ended December 31, 2015 to Rs 5377.83 crore for the quarter ended December 31, 2016.
On consolidated basis, Kotak Bank group posted a profit of Rs 1266.59 crore for the quarter ended December 31, 2016 as compared to Rs 945.16 crore for the quarter ended December 31, 2015.
