Indian Journal of Industrial Relations: Economics & Social Dev.

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

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
     

   Subscribe/Renew Journal


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.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Bandi Ram Prasad (2019), “Is There Much Gain From Mergers” (merger, acquis September 10, 2019) (thehindubusinessline.com)

  • Banks Board Bureau (undated), www.banks boardbureau. org.in

  • Daily Excelsior (20/09/2019), Merger of Banks, dailyescelsior.com, Daily of Jammu and Kashmir

  • Dhameja, L. Nand & Farhat Mohsin (2019), Punjab Maharashtra Co-operative Bank Ltd: -Case Concerning Bank Advances (MAIMS), Journal of Management,14 (1 & 2): 70-77

  • Dhameja, Nand & Shilpa Arora (2020), “Banking in India: Evolution, Performance, Growth and Future”, Indian Journal of Public Administration, Forthcoming.

  • ETBFSI (2020), “Time for Promotions, Transfers at Public Sector Banks Heading for Merger”, Economic Times Daily News Letter, ET BFSI.com, January 08

  • Khan Committee (1997), “Allow Banks to Pledge Corporate Bonds as Collateral with RBI”, Reserve Bank of India

  • M. Narasimham Committee (1991), Committee on Financial System, Reserve Bank of India

  • M. Narasimham Committee II (1998), Banking Sector Committee, Reserve Bank of India

  • Nayak P. J. (2014), Report of The Committee to Review Governance of Boards of Banks in India, May 2014, Government of India.

  • Reserve Bank of India (2008), Report on Currency and Finance 2008 Indian Banking: An Overview Since Independence, Chapter III

  • Reserve Bank of India (Sept. 2008), Evolution of Banking in India, Report of Currency and Finance, Chapter III September 2008

  • Reserve Bank of India (2017-18), Report on Trends and Progress of Banking in India (2017- 18) Reserve Bank of India, Report on Trends and Progress of Banking in India Various issues

  • S & P Global Market Report of the 100 Largest Banks in the World, Wikipedia 2019

  • Somesh Jha, (2020), RBI to Gain Regulatory Control Over Co-operative Banks in a Phased Manner, Business Standard, July 1, 2020

  • Subbarao, Duvvuri (2011), “Corporate Governance for Banks in India in Pursuit of Productivity Excellence”, Inaugural Address at the FICCI-IBA (Federation of Indian Chambers of Commerce & Industry – Indian Banks’ Association) Conference on “Global Banking: Paradigm Shift”, Mumbai, 23 August 2011

  • Subbarao, Duvvuri (2016), “Who Moved My Interest Rates”? Penguin Publications, 2016.Times of India, Delhi, August 31, 2019.

  • Verma Commit t e e (1 9 9 6 ) , Weak Public Sector Banks, Reserve Bank of India,

  • Vinod Rai, former C & A G and Chairman of the Banks Board Bureau (BB B ), www.banksboardbureau.org.in

  • Vinod Rai, (2019), Banks Mergers a Good Move, FE Bureau, New Delhi, September 11, 2019)


Abstract Views: 121

PDF Views: 0




  • Banks Mergers in India: Historical Perspective & Strategic Policy Issues

Abstract Views: 121  |  PDF Views: 0

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