AMALGAMATIONS IN INDIAN BANKING SECTOR

Banks play a vital role in the economic development of a country by encouraging the people to save, mobilizing the savings and channelizing them for productive investments in various sectors, helping in the process of capital formation, creation of credit, assisting foreign trade, helping the Government in fulfilling the objectives of planned economic development. Productivity of banks in a country therefore is of utmost importance especially in the present era of Globalization.

The Investment Banking Institute’s report on “Banking Industry Vision” in 2010 itself forecasted that there would be a large scale entry of foreign banks in India and some of the Indian banks will emerge as global players by increasing their size with a view to improve their productivity. In this process 27 Public sector banks in India in 2017 were come down to 12 as on April 1, 2020. This rearrangement has been done by Government of India to increase the size of banks and improve the concept of “focused baking’’

Firstly, this book is aimed to cover the growth of amalgamations in Indian baking sector, the legal framework for mergers & acquisitions and trends & progress of M&A’s in India in general and banking sector in particular. Secondly, it briefly covers the profile of Indian overseas bank (IOB), Industrial development bank of India (IDBI), Housing development Finance Corporation (HDFC) bank, Industrial credit and Investment Corporation of India (ICICI) bank. Finally, it reveals the impact of operational efficiency, productivity, cost efficiency and financial performance of the above said banks.