Federal Bank dismisses reports of merger with Kotak Mahindra

Federal Bank has denied reports about a possible merger with Kotak Mahindra Bank, dubbing them as speculations.

“We wish to clarify categorically that the news report of a merger between Federal Bank and another private bank is speculative in nature,” the private sector lender said in an exchange notice.

The bank’s clarification came after a media report indicated that the management of both the banks have struck a deal on Monday for a merger.

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“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 added in the exchange notice.

Soon after the news of an possible merger broke out, shares of Federal Bank rose nearly 7 percent on the NSE to trade at ₹127.45 per piece.

The bank had recorded a 63.53 per cent year-on-year (YoY) rise in net profit at ₹600.66 crore for the quarter ending June. The same during the last quarter was ₹367.29 crore.