Federal bank : merger with kotak bank?

stock is up 7%. true or fake news by sources* as always?

If you are an day trader, I guess you don’t need to bother, ride the tide for the day or two, long and short. If you are an investor, then you have to verify the news, whichever the way you can, from public domain, from other sources.

Speculation until confirmed by the company!

Something is cooking!

Yes, something is indeed cooking. I read that Kotak has 60 branch in Kerala whilst Federal bank has 1,272 branch in kerala. Each and every NRI (Gulf expats) will have an account with Federal Bank and hence if a merger goes through, this will be a good source of deposits for the merged entity. Kotak has major presence in North India unlike Federal Bank. (I think)


This is what speculation is I guess, thinking of a scenario, a possible scenario which may or may not happen. But these have to looked at appropriately from different lenses depending on who we are, investors or traders.

Of course, I don’t have the necessary knowledge, so I will stay away, more so when the news is about financial institutions. If I were to take a position upon confirming such a merger, I need to know a lot about both the entities, but for who are already investors in either of the banks, it will be easier for them.

Kotak also merged ING Vyasa Bank in 2014. ING also had presence in South India like Federal Bank. So it may be part of Kotak’s policy to expand into south through M&A


Yes. It is very very strong in Kerala region. Their credit exposure is very high towards gold loan. So changes of NPA is also very low.

Disclosure: holding Federal bank

1 Like

A - Did you know about the Fed news today, man what a rush!

B - What Fed, did they have a meeting today, how did I miss that?

A - Not that Fed, our own Federal bank’s merger rumor with Kotak.


consolidation of banks is the mostly trend in the coming yrs

There are have been new banks in the market, SFBs, in the recent years, so I don’t know if big will become bigger by merging regional banks into them.

Yes, very strong.

The merger will have strong union opposition internally in Federal Bank.

About half of that is in Kerala. Rest outside Kerala.

Just be focused on building the most admired bank. We will buy somebody, nobody will buy us,” the MD added, receiving a loud cheer from employees.

These kind of statements are not reliable, these are like punchlines, a merger may happen too.

1 Like

I am sceptic, but seeing this I dont think a merger is happening anytime soon.

I don’t know how true this might be, as far as I’ve checked, it may not happen but we never know.

Federal bank results are quite good this time and bank says better days ahead for NIM going forward.

A potential darkhorse in banking