MERGERS AND ACQUSITIONS OF BANKS IN INDIA.pptx

A presentation on mergers and acquisitions of BANKS in India

1. Mergers and Acquisitions of Banks: Boon or Bane for the Indian Economy A.Chellavidhya III B.Com Department of Commerce Avinashilingam Institute for Home Science and Higher Education for Women Coimbatore

2. INTRODUCTION

3. MEANING OF MERGER &   ACQUISITION A merger is a process of uniting two or more organisations into one new organisation with the aim of better performance and reducing competition. There are several kinds of mergers and also numerous motives why businesses should merge.  In the banking sector, one bank combines with another bank for increasing its productivity. Acquisition is the process in which one organisation takes over another organisation intending to manage it by purchasing its assets and ownership. Acquisitions of bank mean taking control of majority of the other bank’s ownership. Often, stronger banks take over weaker banks. 

4. NEED FOR STUDY

5. OBJECTIVES  

6. HISTORY OF MERGERS AND ACQUISITIONS OF BANKS IN INDIA  

7. Before 1990   The first Mergers and Acquisitions took place in India was the acquisition of Bank of Bihar Ltd by State Bank of India in 1969.  In the very next year, SBI acquired National Bank of Lahore Ltd. But it took 15 years for the next merger.  Besides SBI, other banks like Canara Bank, PNB, Bank of Baroda and Allahabad Bank also acquired some small banks.  1990 to 1999   The first Mergers and Acquisitions took place in India was the acquisition of Bank of Bihar Ltd by State Bank of India in 1969.  In the very next year, SBI acquired National Bank of Lahore Ltd. But it took 15 years for the next merger.  Besides SBI, other banks like Canara Bank, PNB, Bank of Baroda and Allahabad Bank also acquired some small banks.

8. 2000 to 2009 This phase had lots of Mergers and Acquisitions as compared to other phases . It started with HDFC Bank acquiring Times Bank Ltd in 2000 and ended with the same bank acquiring Centurion Bank of Punjab in 2008.   2010 to 2017 ICICI Bank Ltd took over Bank of Rajasthan Ltd in 2010. Kotak Mahindra Bank took over ING Vyasa Bank in 2014. During this phase, State Bank of India merged with  Bharatiya   Mahila  Bank and its associates in 2017. It also combined its domestic branches all over the country.  The Non-Banking Financial Company (NBFC) Capital First merged with IDFC bank to form IDFC Frist Bank with business size of Rs 1.03 lakh crores.  2018

9. MEGA MERGER 2019   Anchor Banks Amalgamating Banks Punjab National Bank Oriental Bank of Commerce & United Bank of India Canara Bank Syndicate Bank Union Bank of India Andhra Bank & Corporation Bank Indian Bank Allahabad Bank

10. ADVANTAGES OF MERGERS AND ACQUISITIONS

11. DISADVANTAGES OF MERGERS AND ACQUISITIONS  

12. POST–MERGER EFFECTS ON BANKS IN INDIA  

13. POST–MERGER EFFECTS ON BANKS IN INDIA  

14. CONCLUSION  

15. THANK YOU