New Delhi, Feb 20 (IANS): The Competition Commission of India (CCI) Friday said it has approved the proposed merger deal between Kotak Mahindra Bank and ING Vysya Bank.

A CCI order dated Feb 12 -- but released Friday -- said it has approved the Rs.15,000 crore merger proposal between the banks.

"The commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India," the CCI said in its order.

The proposed combination is a merger of ING Vysya into Kotak under a scheme of amalgamation.

"The merger scheme provides that for every 1,000 shares held by the shareholders of ING Vysya, 725 shares of Kotak will be allotted to the shareholders of ING Vysya," the order said.

The CCI noted that the market shares of both the banks is insignificant and that presence of large players in these markets would act as a competitive constraint to the parties.

"The proposed combination would not result in the removal of a significant competitor," the order said.

The CCI order further said that with regard to investment advisory services, securities depository services and portfolio management services the market shares of the two banks are insignificant in comparison to the other larger players present in the markets.

"There are large number of competitors, including banks and entities registered with the Securities and Exchange Board of India present in these markets," the order added.

Currently, Kotak Mahindra Bank offers a wide range of banking and financial services through its 641 branches located across India. Kotak, through its various subsidiaries, also provides life insurance, asset management, brokerage, investment banking and investment advisory services.

While, ING Vysya has 573 branches across India and offers retail banking, corporate banking and credit card services. In addition, ING Vysya provides portfolio management, investment advisory and securities depository services to its customers.

In November 2014, Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal. In December 2014, Kotak Mahindra approached CCI for its approval on the deal.