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Bank M&A rumours go around in markets

MUMBAI: In the midst of the Government swinging into action to ensure sufficient liquidity in the banking system, rumours were rife in the stock market about a possible wave of merger among domestic banks, and some public sector bank stocks surged ahead in an otherwise plummeting market.

Even as the banking industry officials asserted against the probability of any merger and acquisitions in the sector to tackle any financial crisis, punters were seen accumulating shares on banking counters.

Asking not to give credence to such rumours, Indian Banks Association (IBA) and Bank of India Chairman T. S. Narayanasami told PTI that, “In given circumstances, I do not think this is possible.”

Top private sector lender ICICI Bank also said it did not see any probability of the authorities asking the domestic banks to undertake merger and acquisition transactions in the wake of the current global financial crisis.

“We do not foresee any such situation,” ICICI Bank’s Joint Managing Director and CFO Chanda Kochhar said.

The sharp plunge in the Bankex was mainly fuelled by close to 20 per cent fall in ICICI Bank and a fall of over five per cent in HDFC Bank. — PTI

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