While the banking industry overall is set for a consolidation drive, the talks of Karnataka Bank being acquired are taking a lot more time than expected before they die down.

It was just before that the news of Axis Bank being interested in acquiring Karnataka Bank, the recent news reports claim that Kotak Mahindra is also eying Karnataka Bank to generate the future growth for the company.

However, the Senior Kotak Bank officials have refused any confirmation to the news of the banking giant eying Karnataka Bank as a target but investors close to the company are quite convinced from the fact that there is possibility of Karnataka Bank being a takeover target.

It may be noted here that the stock of Karnataka Bank has gained more than 23% in the past one month and the day the news of Kotak Mahindra reached the bourses, the stock was up another 3%.

Keeping in mind that the officials close to the industry are eying a consolidation drive in the coming months for the banking industry in the Indian market, the acquisition of Karnataka Bank by either of the banking companies will not be a big surprise for many industry watchers.