Indian Journal of Industrial Relations: Economics & Social Dev.

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Banks Mergers in India: Historical Perspective & Strategic Policy Issues


Affiliations
1 Dean & Professor, Manav Rachna International Institute of Research & Studies, Faridabad, India
2 Director & Professor, Manav Rachna International Institute of Research & Studies, Faridabad., India
3 Senior Banker, India
     

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Indian banks have a long history and have undergone reorganization arising from the need to strengthen or to be competitive. This study presents the historical perspective of banks mergers in India to make them undertake bigger projects and to be globally competitive. Bank mergers gained momentum after economic reforms and liberalization measures in early nineties. There were mega mergers from 2018 onwards with the objective to increase the global competitiveness and to reduce weaknesses of Indian banks. Issues like rationalization bank branches, ATMs, and nonresidents shareholdings of banks are presented. Besides, internal issues such as banks’ performance and governance, strategic policy issues concerning external constraints and including dual regulation, widening compensation differences with private sector banks are discussed.
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  • Banks Mergers in India: Historical Perspective & Strategic Policy Issues

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Authors

Nand L. Dhmeja
Dean & Professor, Manav Rachna International Institute of Research & Studies, Faridabad, India
Deepti Dabas Hazarika
Director & Professor, Manav Rachna International Institute of Research & Studies, Faridabad., India
Manish Dhameja
Senior Banker, India

Abstract


Indian banks have a long history and have undergone reorganization arising from the need to strengthen or to be competitive. This study presents the historical perspective of banks mergers in India to make them undertake bigger projects and to be globally competitive. Bank mergers gained momentum after economic reforms and liberalization measures in early nineties. There were mega mergers from 2018 onwards with the objective to increase the global competitiveness and to reduce weaknesses of Indian banks. Issues like rationalization bank branches, ATMs, and nonresidents shareholdings of banks are presented. Besides, internal issues such as banks’ performance and governance, strategic policy issues concerning external constraints and including dual regulation, widening compensation differences with private sector banks are discussed.

References