Merger and Acquisition in Banking Industry: A Case Study of ICICI Bank Ltd

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With the enactment of Companies Act 2013, number of new provisions have been introduced which further supplement the idea of Merger & Acquisition amongst various companies. The same likewise been fortified as a way of strengthening and consolidation for banks and financial institutions. On one hand, in the case banks, while they are being acquired or merged, the overall assets and liabilities are clubbed together to increase the output as well the working capital of the company along with the enhancement of various other similar facets. However in financial institutions, though the efficiency of banks or financial institutions tends to enhance in a similar fashion as to a company, but the effects of such merger & acquisitions appear to the general public at large, along with the financial market in terms of policies as well as the legal framework. This paper analyses the concept and instances of Merger & Acquisition (M&A) in thebanking sector in India, along with the impact of such .

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International Journal of Research Publication and Reviews

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International Journal For Multidisciplinary Research

Merger and Acquisition is the management and strategy dealing with purchasing and/or merging with another entity .In merger two different organizations combine to make a new business ,usually with a new name.Because the companies involved are typically of smaller size and structure. With the help of merger and acquisition in the banking sector the banks can achieve significant growth in their operation and minimize their expenses. Merger eliminates competitor from banking Industry .This study shows the impact of Merger and Acquisition in the Banking Sector. For this purpose ,a comparison between pre and post merger i.e ROE(Return on equity, EPS(Earning per share),Debt Equity Ratio, Net profit Ratio. In this research paper I have selected merger of ICICI Bank and Bank of Rajasthan, HDFC Bank and Centurion Bank and Kotak with ING Vysya.

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International Journal of Trend in Scientific Research and Development

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Financial Sector Reforms set in motion in 1991 have greatly changed the face of Indian Banking. Since 1992, the Indian Banking system has undergone several changes in terms of organisation, functions, resource mobilisation, socioeconomic role etc. In the wake of economic reforms, Indian industries have started restructuring their operations around their core business activities through merger, acquisition, and takeovers. Merger and Acquisitions provide an opportunity to banks to share their resources, expand delivery platforms & to improve chances for economies of scale in their operations. In this paper an attempt is made to compare the premerger and post-merger performance of State bank of India with its associates banks comparing different efficiency parameters.

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The purpose of the present paper is to explore various motives of merger in Indian banking industry. This includes various aspects of bank mergers. It also compares pre and post merger financial performance of merged banks with the helps of financial parameters like, Gross Profit margin, Net Profit margin, operating Profit margin, Return on Capital Employed, Return on Equity, and Debt Equity Ratio. Through literature Review it comes know that most of the work done high lightened the impact of merger and Acquisition on different companies. The data of Merger and Accusations since economic liberalization are collected for a set of various financial parameters. Independent T-test used for testing the statistical significance and this test is applied not only for ratio analysis but also effect of merger on the performance of banks. This performance being tested on the basis of two grounds i.e. , Pre-merger and Post-merger. Finally the study indicates that the banks have been positively affected by the event of merger.

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