Mergers and Acquisitions in Banking: An Overview in Indian Context

ABSTRACT

Consolidation in the banking sector is a relatively new development enhanced through mergers and acquisitions. Bank can achieve a world-class position and can help stakeholders to achieve superior value. Mergers and acquisitions have played important role in the transformation of the industrial as well as the banking sector, which is enhanced by reducing cost and increasing revenue. A large number of public sector banks, private sector banks, and other banks consolidated in the process of merger and acquisition.in recent times mergers and acquisitions is voluntarily done by banks. The Largest ever merger takes place when on 30th august 2019 union minister Smt. Nirmala Sitharaman announced the consolidation of 10 public sector banks to form 4 bigger lenders to strengthen the current banking sector. A merger of times bank with HDFC Bank was the first bank consolidation after financial reforms in 1991. In the changing business environment speed, flexibility, quick responsiveness to customers is the backbone to remain in the competition. Banks are not able to achieve this without large infrastructure and technology. Consolidation through merger and acquisition help banks to strengthen infrastructure and overcome the problem of outdated technology and bad loans position.

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