The ING Group is all set to increase its stake in ING Vysya Bank to 51 per cent from the current level of 44 per cent. The group will also pump in $100 million over a two-year period for the all-round upgradation of ING Vysya Bank’s operational platforms to international standards—the largest such investment by any foreign bank in the country.While local ING Group officials declined to comment on hiking of the equity stake, well-placed sources said that the move to raise the stake to 51 per cent will fructify “anytime now”. It was pointed out that while no decision has been taken as to how far the ING Group will go in ING Vysya Bank—the new ceiling is 74 per cent with proportional voting rights to boot—51 per cent will give the Dutch player management control for now, and the issue of a still higher stake may be decided at a later date. It is also not clear whether ING Bank will buy out the IFCI’s 5 per cent stake or whether the entire additional 7 per cent will be from the market.“ING Bank was the first to move in and increase its stake to 44 per cent from 19 per cent in Vysya Bank when others were still talking about regulatory clarity,” a source said. “We will be the first to go up to 51 per cent as well,” source added.With this move, ING Vysya Bank will be, for all practical purposes, the first fully foreign-controlled and listed bank in the country. It will also be the biggest offshore financial player both in terms of balance-sheet and interests — a full-services bank, mutual fund, investment banking, and a technology outfit given its “relationship” with Mphasis-BFL: shares of the company are pledged with it.ING, which has an insurance operation in the country with a joint venture with Vysya Bank, will also increase its stake to 49 per cent from 26 per cent as soon as the Centre allows the move. The insurance JV has done well during the last 18 months of operation.
