Sunday, November 23, 2014

Merger of banks in India ...sell on the fact...

The recent Kotak Mahindra with ING Vysya Bank merger leaves some questions which nag:
a) Kotak has stated that there would be no ' drastic ' job buts.  Then where are the economic synergies? Productivity is all that matters.
b) What about the cultural fusion issue: a drag on all normal HR issues?
c) While the GOI is keen to bring in foreign investment, why is a Dutch group dis-investing?
d) Is it that the foreign investors have realized the  ING Vysya has assets that it needs to pass on? If that is so is the proud new bank holding a hot potato?
e) Is the banking sector not so good in the foreign investor's eyes?

Dictum in trading: Buy on the rumor, sell on the fact!!! 

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