A Study on Pre & Post Performance Evaluation of Merger and Acquisition of Selected Indian Banks.
Journal of Advanced Research in
and Social Sciences
Impact Factor: 4.400
MERGERS A N D ACQUISITIONS IN THE INDIAN BANKING SECTOR: A STUDY OF
Abstract: In the present era of global economy,
most widely used business strategy
of corporate profitability, entering
of scale etc. The present paper evaluates
on the financial is conducted
have become the
and strengthening new markets,
the effects of merger and acquisitions
to analyse the effectiveness
on the banks. Two cases of merger …show more content…
Banking sector plays a crucial role in the economic g r o w t h and development of a nation.
Globalisation, deregulation of economies coupled w i t h technological development has changed the banking landscape dramatically. W i t h the fast changing environment, the banking sector is resorting to the process of consolidation, corporate restructuring and strengthening to remain efficient and viable. For this, Mergers and Acquisitions have become the preferred strategy for g r o w t h in the size of banks which in t u r n play a significant role in entering the global financial market. Besides Mergers and Acquisitions are widely used for achieving higher market share, overall productivity and profitability, expanding branch networks, strengthen their capital base, cost rationalisation, economies of scale and manpower efficiency.
Mergers and Acquisitions in Indian banking sector have been initiated in response to the various economic reforms introduced by t h e government of India since 1991, in its move towards liberalisation,
Narshimam Committe I (1991), Narshimam committee II (1997) and Verma