An Overview of Mergers and Acquisitions in Indian Banking

ABSTRACT

Mergers and acquisitions have been a relatively recent phenomenon that have contributed to consolidation in the banking sector. The bank may become an industry leader and provide its shareholders with exceptional returns. Cost savings and revenue growth are two key benefits of mergers and acquisitions that have contributed to their widespread adoption in the financial and manufacturing sectors. Numerous banks, both public and private, and other financial institutions have merged or been acquired in recent years. Recently, banks have been merging and acquiring each other on their own volition. When Union Minister Smt. Nirmala Sitharaman stated on 30 August 2019 that 10 public sector banks would be merged into 4 larger lenders, it was the largest merger in banking history. The first bank merger following the 1991 financial reforms was between Times Bank and HDFC Bank. To thrive in today’s fast-paced business world, companies need to be nimble, adaptable, and quick to respond to client needs. Without substantial investment in technology and infrastructure, banks simply cannot compete. Banks can improve their infrastructure, update their technology, and improve their bad loan situation by merging or acquiring other financial institutions.

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