ING has finalised the purchase of an additional 24% stake in Vysya Bank Ltd. in India. The value of the transaction is approximately EUR 73 million.
ING announced on 20 June 2002 its proposal to increase its interest in Vysya Bank to a total of 44%. This transaction marks the largest foreign direct investment by an international financial institution into an Indian bank under the newly increased 49% cap on foreign direct investment in Indian banks.
The acquisition of a larger stake in Vysya Bank demonstrates INGÂ's intention to develop a robust bancassurance strategy in India. ING and Vysya Bank will be able to offer customers an expanded range of banking, insurance and asset management products and services.
ING has received regulatory approval for its acquisition of additional shares in Vysya Bank from the Reserve Bank of India and the Foreign Investment Promotion Board.
(source: ING Group)