Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Mergers and Acquisitions in the Indian Banking Sector


Affiliations
1 Alliance University, Bengaluru, Karnataka, India
     

   Subscribe/Renew Journal


This study aims to understand mergers and acquisitions activities in the Indian banking industry in the post-liberalisation period. The Indian banking industry witnessed a massive transformation in the post-liberalisation period, and triggered by economic development, the industry has emerged as one of the biggest drivers of economic growth. The industry has further undergone significant developments, with recognition of the importance of private and foreign players in the Indian market. In the light of the changing environment and ever-increasing competition, different strategies are adopted in the banking industry today. One such prominent strategy is mergers and acquisitions, which act as an important process for growth and expansion. This study analyses the impact of the mergers and acquisitions activities on the performance and profitability of banks. For the purpose of the study, five case studies of mergers/acquisitions in the post-liberalisation period have been analysed. The analysis includes comparision of financial statements, conducting ratio analysis using five-year pre- and post-merger data, and also examination of the effect of merger announcements on the share prices.

Keywords

Mergers and Acquisitions, Indian Banking Industry, Performance, Profitability.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Gandhi, V., Chhajer, P., & Mehta, V. (2020). Post-merger financial performance of Indian banks: CAMEL approach. International Journal of Banking, Risk and Insurance, 8(2), 1-13.
  • Hughes, A. (1993). Mergers and economic performance in the UK: A survey of the empirical evidence 1950-90. European Mergers and Merger Policy. Oxford University Press.
  • Kuriakose, S., & Kumar, G. S (2010). Assessing the strategic and financial similarities of merged banks: Evidence from voluntary amalgamations in Indian banking sector. Science and Society, 8(1), 49-62.
  • Kuriakose, S., Senam, R. M. S., & Narasimham, N. V. (2009). Voluntary amalgamations in Indian banking sector: Valuation practices and adequacy of swap ratios. SSRN Working Paper No. 1653698.
  • Mall, P., & Gupta, K. (2019). Impact of merger announcements on stock returns of acquiring firms: Evidence from India. Journal of Commerce and Accounting Research, 8(1), 46-53.
  • Mantravadi P., & Reddy, A. V. (2007). Relative size in mergers and operating performance: Indian experience. Economic and Political Weekly.
  • Mehta, J., & Kakani, R. K. (2006). Motives for mergers and acquisitions in the Indian banking sector – A note on opportunities & imperatives. SPJCM Working Paper 06-13.
  • Srivassan, R., Chattopadhyay, G., & Sharma, A. (2009). Merger and acquisition in the Indian banking sector – Strategic and financial implications. IIMB Management Review.
  • Varghese, T., & Thaha, A. (2017). Impact of merger on acquiring bank performance: A case of Kotak Mahindra Bank. Journal of Commerce and Accounting Research, 6(3), 34-43.

Abstract Views: 45

PDF Views: 0




  • Mergers and Acquisitions in the Indian Banking Sector

Abstract Views: 45  |  PDF Views: 0

Authors

Mihir Dash
Alliance University, Bengaluru, Karnataka, India

Abstract


This study aims to understand mergers and acquisitions activities in the Indian banking industry in the post-liberalisation period. The Indian banking industry witnessed a massive transformation in the post-liberalisation period, and triggered by economic development, the industry has emerged as one of the biggest drivers of economic growth. The industry has further undergone significant developments, with recognition of the importance of private and foreign players in the Indian market. In the light of the changing environment and ever-increasing competition, different strategies are adopted in the banking industry today. One such prominent strategy is mergers and acquisitions, which act as an important process for growth and expansion. This study analyses the impact of the mergers and acquisitions activities on the performance and profitability of banks. For the purpose of the study, five case studies of mergers/acquisitions in the post-liberalisation period have been analysed. The analysis includes comparision of financial statements, conducting ratio analysis using five-year pre- and post-merger data, and also examination of the effect of merger announcements on the share prices.

Keywords


Mergers and Acquisitions, Indian Banking Industry, Performance, Profitability.

References