Mergers and Acquisitions in Indian Banking Sector: a Case Study

The process of liberalisation, privatisation and globalisation started with the opening of the Indian Economy in early 1990's, which has a graet effect on the Indian banking sector leading to various changes. The present book is an attempt to assess the impact on the Indian banking sector. After a brief discussion of the concepts and the changes ushered due to the liberalisation process, a few selected cases have been discussed in detail. The cases dealt cover government sponsored mergers as well as purely market driven mergers. A set of parameters which indicate the performance of banks are chosen to assess the performance of two entities prior to merger and of the resulting entity post merger. The results indicate that Government have to take initiative to permit nationalised banks to go for market driven mergers to create banks of size big enough to compete globally.