Indian Journal of Industrial Relations: Economics & Social Dev.

Nand L. Dhmeja ¹, Deepti Dabas Hazarika ², Manish Dhameja ³

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

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.

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