INGA ING Groep NV

By Ian Walker

ING Groep N.V. (INGA.AE) said Thursday ING Vysya Bank, in which it has a 42.7% shareholding, plans to merge with India's Kotak Mahindra Bank, a move it plans to support.

The Dutch financial firm added that it expects to book a net profit of 150 million euros ($188.01 million) from the deal. Upon completion it will hold a 7% shareholding in the merged group.

"In line with ING's Think Forward strategy, the merger of Vysya with Kotak will give ING a stake in a stronger bank with an excellent long-term potential for sustainable profitable growth," it said. ING and Kotak also intend to explore areas of cooperation in cross border business.

The merger of Vysya and Kotak is expected to complete in the second half of 2015.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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