Although there had been denials about a possible merger, Kotak Mahindra Bank is said to have informally approached the government seeking to buy a stake in Axis Bank. The government holds 11.94% equity stake through SUUTI (Specified Undertaking of Unit Trust of India) in Axis Bank. News reports said other private banks are also interested in buying the stake. Kotak Mahindra and Axis Bank had denied speculations about considering a possible merger. The government is said to have studied the prospects of selling its stake in companies held through SUUTI to help it achieve its disinvestment target of Rs 72,500 crore in the next financial year. SUUTI holds equity stakes in over 50 companies.
