This document discusses mergers and acquisitions in the Indian banking sector from 2000-2013. It analyzes the performance of three major banks that underwent mergers - ICICI Bank, State Bank of India, and HDFC Bank. The key findings were that M&As provided some benefits like economies of scale, increased market share and branch networks, and skill/talent transfer between organizations. However, the government should not promote mergers between strong and distressed banks as it can negatively impact the stronger bank's asset quality. The document also provides details on the history and reasons for M&As in Indian banking, as well as specific examples like ICICI Bank's acquisition of Bank of Madura in 2001.
MERGERS AND ACQUISITIONS PROSPECTS: INDIAN BANKS STUDYpaperpublications3
Abstract:This research paper looks at Mergers and Acquisitions (M&A’s) that have happened in Indian banking sector to understand the resulting synergies and the long term implications of the merger. The paper also analyses emerging future trends and recommends steps that banks should consider for future. The paper reviews the trends in M&A’s in Indian banking and then impact of M&A’s has been studied in three leading banks of India. The study covers the area of performance evaluation of M&A’s in Indian banking sector during the period from 2000 to 2013. The paper compares pre and post merger financial performance of merged banks with the help of financial parameters like, Net Profit margin, operating Profit margin, Return on Capital Employed, Return on Equity, earnings per share, capital adequacy ratio, dividend per share etc. The findings suggest that to some extent M&A’s has been successful in Indian banking sector. The Government and Policy makers should not promote merger between strong and distressed banks as a way to promote the interest of the depositors of distressed banks, as it will have adverse effect upon the asset quality of the stronger banks.
Keywords:Strategic alliance, capital adequacy, mergers, consolidation, ratios.
Financial appraisal of commercial banks in india a post reforms asessmentAlexander Decker
This document summarizes a research study analyzing the financial performance of commercial banks in India following economic reforms. It begins by providing background on the importance of banks in India's financial system and the transformation of banking since nationalization. The study aims to evaluate operational performance, profitability, and factors influencing efficiency for different bank groups from 1990-2010. Methodology includes analyzing secondary data from central bank and industry sources using statistical tools like correlation, regression, and factor analysis. An extensive literature review covers prior research on Indian bank profitability, productivity, and efficiency.
This document appears to be a project report on mergers and acquisitions in the Indian banking sector. It discusses several bank mergers that have occurred in India, including HDFC Bank and Times Bank, ICICI Bank and Bank of Madura, and Global Trust Bank and UTI Bank. It analyzes the motives and benefits of mergers, such as increasing competitiveness and shareholder value. The report also examines the recommendations of the Narasimham Committee on banking reforms regarding consolidation in the sector through mergers between strong banks. Overall, the document provides an overview of mergers and acquisitions that have taken place in the Indian banking industry.
This document provides an overview of public sector undertakings (PSUs) in India. It discusses that PSUs are government-owned companies that play an important role in India's economy. The document then covers several key topics regarding PSUs, including the financial management challenges they face, the role of financial advisors, examples of major PSUs, and reforms around disinvestment and increasing transparency. It analyzes issues like managing risks and growth in the changing banking environment in India. Overall, the document presents an introduction to PSUs and examines their operations, importance, and ongoing development.
This document summarizes Mahindra & Mahindra Ltd.'s performance management system. It discusses how the company uses a balanced scorecard approach to set strategic goals and key result areas for departments, functions, and individuals aligned with business objectives. It outlines the annual performance appraisal cycle which includes workshops for setting KRAs, mid-year reviews, final appraisals involving feedback and ratings, and counseling. The goal is to evaluate employee performance, provide development opportunities, and generate data for compensation and promotion decisions.
This document is a capstone project report submitted by Ruchi Agarwal for the Post Graduate Diploma in Management program at SIES College of Management Studies. The report is about mergers and acquisitions in the banking sector. It includes declarations, acknowledgements, and certificates signed by the student and guide. It also includes an executive summary of objectives, introduction to the topic, and an outline of the contents with chapter headings discussing literature review, types of mergers, HR issues, case studies of bank mergers in India, and conclusions.
This document provides an overview and introduction to a project report on developing a customer retention strategy for ICICI Securities. It includes sections on introducing customer retention, describing ICICI Securities, analyzing the Indian financial sector, and stating the importance of the study. The document outlines the table of contents for the full report, which will cover a theoretical background/literature review, objectives, framework, research design, data analysis, limitations, and conclusions.
A comparison of technical efficiency of performance of different banks before...Alexander Decker
This document summarizes a study that compares the technical efficiency and performance of banks in Pakistan before and after mergers from 2001 to 2010. It analyzes six mergers that occurred: Prime and ABN AMRO, ABN AMRO and Royal Bank of Scotland, RBS and Faysal Bank, Saudi Pak Commercial Bank and Silk Bank, Union Bank and Standard Chartered Bank, and Cres and Samba Bank. Regression and data envelopment analysis are used to analyze variables like assets, advances, branches, and labor productivity. The results found most banks improved somewhat after mergers. A complete comparison of individual bank performance pre-and post-merger identified deficiencies. The study aims to evaluate past mergers to provide guidance on achieving the best
MERGERS AND ACQUISITIONS PROSPECTS: INDIAN BANKS STUDYpaperpublications3
Abstract:This research paper looks at Mergers and Acquisitions (M&A’s) that have happened in Indian banking sector to understand the resulting synergies and the long term implications of the merger. The paper also analyses emerging future trends and recommends steps that banks should consider for future. The paper reviews the trends in M&A’s in Indian banking and then impact of M&A’s has been studied in three leading banks of India. The study covers the area of performance evaluation of M&A’s in Indian banking sector during the period from 2000 to 2013. The paper compares pre and post merger financial performance of merged banks with the help of financial parameters like, Net Profit margin, operating Profit margin, Return on Capital Employed, Return on Equity, earnings per share, capital adequacy ratio, dividend per share etc. The findings suggest that to some extent M&A’s has been successful in Indian banking sector. The Government and Policy makers should not promote merger between strong and distressed banks as a way to promote the interest of the depositors of distressed banks, as it will have adverse effect upon the asset quality of the stronger banks.
Keywords:Strategic alliance, capital adequacy, mergers, consolidation, ratios.
Financial appraisal of commercial banks in india a post reforms asessmentAlexander Decker
This document summarizes a research study analyzing the financial performance of commercial banks in India following economic reforms. It begins by providing background on the importance of banks in India's financial system and the transformation of banking since nationalization. The study aims to evaluate operational performance, profitability, and factors influencing efficiency for different bank groups from 1990-2010. Methodology includes analyzing secondary data from central bank and industry sources using statistical tools like correlation, regression, and factor analysis. An extensive literature review covers prior research on Indian bank profitability, productivity, and efficiency.
This document appears to be a project report on mergers and acquisitions in the Indian banking sector. It discusses several bank mergers that have occurred in India, including HDFC Bank and Times Bank, ICICI Bank and Bank of Madura, and Global Trust Bank and UTI Bank. It analyzes the motives and benefits of mergers, such as increasing competitiveness and shareholder value. The report also examines the recommendations of the Narasimham Committee on banking reforms regarding consolidation in the sector through mergers between strong banks. Overall, the document provides an overview of mergers and acquisitions that have taken place in the Indian banking industry.
This document provides an overview of public sector undertakings (PSUs) in India. It discusses that PSUs are government-owned companies that play an important role in India's economy. The document then covers several key topics regarding PSUs, including the financial management challenges they face, the role of financial advisors, examples of major PSUs, and reforms around disinvestment and increasing transparency. It analyzes issues like managing risks and growth in the changing banking environment in India. Overall, the document presents an introduction to PSUs and examines their operations, importance, and ongoing development.
This document summarizes Mahindra & Mahindra Ltd.'s performance management system. It discusses how the company uses a balanced scorecard approach to set strategic goals and key result areas for departments, functions, and individuals aligned with business objectives. It outlines the annual performance appraisal cycle which includes workshops for setting KRAs, mid-year reviews, final appraisals involving feedback and ratings, and counseling. The goal is to evaluate employee performance, provide development opportunities, and generate data for compensation and promotion decisions.
This document is a capstone project report submitted by Ruchi Agarwal for the Post Graduate Diploma in Management program at SIES College of Management Studies. The report is about mergers and acquisitions in the banking sector. It includes declarations, acknowledgements, and certificates signed by the student and guide. It also includes an executive summary of objectives, introduction to the topic, and an outline of the contents with chapter headings discussing literature review, types of mergers, HR issues, case studies of bank mergers in India, and conclusions.
This document provides an overview and introduction to a project report on developing a customer retention strategy for ICICI Securities. It includes sections on introducing customer retention, describing ICICI Securities, analyzing the Indian financial sector, and stating the importance of the study. The document outlines the table of contents for the full report, which will cover a theoretical background/literature review, objectives, framework, research design, data analysis, limitations, and conclusions.
A comparison of technical efficiency of performance of different banks before...Alexander Decker
This document summarizes a study that compares the technical efficiency and performance of banks in Pakistan before and after mergers from 2001 to 2010. It analyzes six mergers that occurred: Prime and ABN AMRO, ABN AMRO and Royal Bank of Scotland, RBS and Faysal Bank, Saudi Pak Commercial Bank and Silk Bank, Union Bank and Standard Chartered Bank, and Cres and Samba Bank. Regression and data envelopment analysis are used to analyze variables like assets, advances, branches, and labor productivity. The results found most banks improved somewhat after mergers. A complete comparison of individual bank performance pre-and post-merger identified deficiencies. The study aims to evaluate past mergers to provide guidance on achieving the best
Hindustan Uniliver Project Report and SWOT analysis for Economics ProjectKanishk Chauhan
The document discusses Hindustan Unilever Limited (HUL), India's largest fast-moving consumer goods company. It analyzes HUL's market strategies, product customization, rural expansion, and financial performance. The analysis also examines HUL's market dominance in India through its large portfolio of brands and strategic focus on rural consumers.
Capstone Project on Merger & Acquisition on Banking Sectorsavio basimalla
This document appears to be a student capstone project on mergers and acquisitions in the banking sector. It includes sections on defining mergers and types of mergers, benefits of mergers, laws affecting takeovers and mergers, and the research methodology. The student declares this is their original work submitted for a postgraduate diploma. They acknowledge help from their professor and friends.
This document discusses the analysis of stock price movements in India's automobile industry. It begins by introducing the context of increased globalization and competition in the automobile industry. The study focuses on analyzing stock price data of automobile companies listed on the Bombay Stock Exchange over a 5-year period from 2012 to 2017. It aims to examine stock price movements and measure risk using beta coefficients. The methodology section outlines the sampling of 3 automobile companies, data collection from secondary sources like stock exchange websites, and statistical analysis tools used like averages, variances, and beta. The limitations include the use of secondary data and limited time period and company scope.
M&A Trends and Financial Performance of Telecom Companies during Pre& Post Me...Mayur Nahar
The objective of my project is to study the Telecom industry in India and understand how the recent trends are driving Mergers, Acquisitions and Partnerships in this industry. I will study recent partnerships, merger and acquisitions that have taken place in this industry. I will focus on the following the following deals in the industry to gain deeper understanding of the M&A nuances in this industry:
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Analysis of Financial Health of the New Private Sector Banks in India throug...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document summarizes a research paper that examines factors influencing voluntary auditor changes in companies listed on the Indonesia Stock Exchange in 2018. The paper studies how audit opinion, auditor firm size, management changes, financial distress, and company growth may impact an organization's decision to change auditors. The researchers conducted a quantitative study of 64 companies using secondary data and statistical analysis to determine the effects of these factors. The results found that audit opinion, management changes, financial distress, and company growth did not significantly influence auditor turnover, but auditor firm size did have a significant positive impact on companies changing auditors.
This document discusses a comparative analysis of non-performing assets (NPAs) through rising asset levels conducted by Savio Basimalla at Thane Janata Sahakari Bank. It includes a declaration, certificate of completion, acknowledgements, table of contents, and executive summary describing the structure of the Indian banking sector and issues considered in reviewing and revising the banking structure. Key topics discussed include small banks vs large banks, universal banking models, continuous authorization of new banks, converting urban cooperative banks, bank consolidation, presence of foreign banks in India, and Indian banks' presence overseas.
1) The document discusses investment rating for replanting palm oil plantation companies in Sumatra, Indonesia. It provides background on palm oil production in Indonesia and issues with aging palm oil plants.
2) It aims to determine if replanting palm oil plantations in Sumatra qualify as "investment grade" according to Moody's ratings and how to improve the rating.
3) After analysis using Moody's rating system, the results found that replanting plantations in Sumatra received a rating of "Ba3" with "medium risk," qualifying as investment grade but improvements could attract more investors by lowering the risk.
This document summarizes a research article that examines factors affecting going concern audit opinions. The study analyzed 141 companies listed on the Indonesia Stock Exchange from 2012-2014. The results of the logistic regression analysis found that audit quality, company size, and managerial ownership affected the likelihood of a going concern audit opinion. However, the previous year's audit opinion, institutional ownership, growth, debt default, opinion shopping, bankruptcy prediction, audit committee activity, and audit committee membership did not affect the likelihood of a going concern audit opinion. The purpose of the study was to determine what factors influence the issuance of a going concern audit opinion for manufacturing companies listed on the Indonesia Stock Exchange.
This document analyzes the performance of Chinese listed companies before and after seasoned equity offerings. It examines four companies that conducted large private placements in 2012. Two companies, Guangdong Electric Power Development and Shanghai Tunnel Engineering, showed improved performance after the offering, indicating the funds were used efficiently. However, Henan Shuanghui Investment & Development and Hainan Airlines saw declining performance, likely due to inefficient use of funds and unhealthy financial structures. The analysis suggests that not all equity offerings benefit companies and investors, and listed firms should ensure capital is utilized effectively.
The Effect of Capital Structure on Firm Performance: Empirical Evidence from ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A project report on competitive intelligence for manthan services bangaloreBabasab Patil
The document discusses competitive intelligence and its importance for organizations to survive and thrive in today's competitive environment. It defines competitive intelligence as collecting and analyzing information about competitors to create actions that benefit a company. It also outlines the competitive intelligence process, which includes planning, collection of internal and external data, analysis, production of intelligence reports, and dissemination of information. The goal is to minimize threats from competitors by gaining an understanding of their strategies, capabilities, customers and markets.
Annamalai MBA 2nd year General 346 Solved Assignment 2021palaniappann
Sir/ Madam
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects from Marketing, Finance, Human Resource Management, Information Systems, International Business and General Specializations. He has written many research papers and case studies.
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA Assignment help and MBA Project help. Many clients national and international has appreciated Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects and MBA subject coaching.
You can call him on his mobile no. 9025810064 (whatsapp available) or mail him at palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com.
Contact:
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD
Mail ID: palaniappanmail@gmail.com
Ph: - 9025810064 (whatsapp available)
1. Please detail your efforts to extend banking products and services to wider parts of the community.
2. Banks face many challenges – new regulations, more competition, slowing growth in some markets. Please describe your strategy for keeping your bank’s returns high?
3. Why you choose Banking Career?
4. Loan against Share. Should Banking Industry Promote or Not?
5. What particular actions provided your bank with significant success or market advantage over the past 12-15 months?
The document discusses Nestle India's efforts to promote sustainable agriculture and water stewardship. It describes projects Nestle has partnered on to introduce more efficient cultivation techniques for water-intensive crops like rice and sugarcane in the Kabini River basin. These techniques aim to benefit farmers through higher yields and lower costs while reducing water usage and promoting better soil health. The document also outlines Nestle's work with coffee and milk farmers to raise awareness on water conservation practices like drip irrigation, recycling, and optimizing water use.
This document analyzes the operation mode of Capitaland's Real Estate Investment Trusts (REITs) in Singapore and discusses implications for China's real estate industry. It finds that Capitaland uses a "dual-fund" model where private equity funds incubate early-stage projects that are later injected into REITs for stable income and asset realization. Key characteristics include covering the entire industry chain from development to asset management, and pairing private funds and REITs to accelerate investment cycles. When applying this model in China, adjustments should be made for differences in economic/cultural environment, and rental housing REITs could serve as pilots given China's current conditions.
The impact of merger and acquisition of the performance and growth of banks inBalaramDhara
The document appears to be a project submitted for a Master's degree that examines the impact of mergers and acquisitions on the performance and growth of banks in India. It includes sections on an introduction/overview of the Indian banking sector, the conceptual framework used for the study, a literature review, research methodology, data analysis and interpretation, and conclusions. The project was conducted under the guidance of Dr. Jignesh Dalal to fulfill degree requirements at the University of Mumbai."
A project report on analysis of financial statement of icici bankProjects Kart
This document discusses a minor project report on the analysis of the financial statements of ICICI Bank. It provides background information on ICICI Bank, including its history, board of directors, organizational structure, products and services. It then outlines the objectives and contents of the financial statement analysis project, which includes studying ICICI Bank's profit and loss account, balance sheet, and cash flow statement as well as conducting ratio analysis and evaluating the bank's financial soundness.
MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTORRaku Daku
This document provides an overview of mergers and acquisitions that have occurred in the Indian banking sector. It discusses several major mergers such as HDFC Bank and Times Bank in 1999, ICICI Bank acquiring Bank of Madura, and Global Trust Bank merging with UTI Bank. The motives for mergers are discussed, including improving competitiveness and shareholder value. Recommendations from the Narasimham Committee on banking reforms are summarized, including that mergers should not be used to bail out weak banks but could help strong banks. In conclusion, the Indian banking sector has generally destroyed shareholder wealth while mergers of strong banks tend to create value.
Mergers and Acquisitions in Indian Banking Sector A Case of Bharat Overseas B...ijtsrd
Mergers and Acquisitions MandAs continue to be a significant force in the restructuring of the financial services industry. The Indian Commercial Banking Sector, which has played a pivotal role in the country’s economic development, is currently passing through an exciting and challenging phase. The present research papers studies the impact of MandA on the financial performance of Bharat Overseas Bank and Indian Overseas Bank. The study uses key financial ratios to find the impact of MandA on financial performance of selected banks. Dr. Soniya Gambhir "Mergers and Acquisitions in Indian Banking Sector (A Case of Bharat Overseas Bank and Indian Overseas Bank)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38415.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38415/mergers-and-acquisitions-in-indian-banking-sector-a-case-of-bharat-overseas-bank-and-indian-overseas-bank/dr-soniya-gambhir
Hindustan Uniliver Project Report and SWOT analysis for Economics ProjectKanishk Chauhan
The document discusses Hindustan Unilever Limited (HUL), India's largest fast-moving consumer goods company. It analyzes HUL's market strategies, product customization, rural expansion, and financial performance. The analysis also examines HUL's market dominance in India through its large portfolio of brands and strategic focus on rural consumers.
Capstone Project on Merger & Acquisition on Banking Sectorsavio basimalla
This document appears to be a student capstone project on mergers and acquisitions in the banking sector. It includes sections on defining mergers and types of mergers, benefits of mergers, laws affecting takeovers and mergers, and the research methodology. The student declares this is their original work submitted for a postgraduate diploma. They acknowledge help from their professor and friends.
This document discusses the analysis of stock price movements in India's automobile industry. It begins by introducing the context of increased globalization and competition in the automobile industry. The study focuses on analyzing stock price data of automobile companies listed on the Bombay Stock Exchange over a 5-year period from 2012 to 2017. It aims to examine stock price movements and measure risk using beta coefficients. The methodology section outlines the sampling of 3 automobile companies, data collection from secondary sources like stock exchange websites, and statistical analysis tools used like averages, variances, and beta. The limitations include the use of secondary data and limited time period and company scope.
M&A Trends and Financial Performance of Telecom Companies during Pre& Post Me...Mayur Nahar
The objective of my project is to study the Telecom industry in India and understand how the recent trends are driving Mergers, Acquisitions and Partnerships in this industry. I will study recent partnerships, merger and acquisitions that have taken place in this industry. I will focus on the following the following deals in the industry to gain deeper understanding of the M&A nuances in this industry:
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Analysis of Financial Health of the New Private Sector Banks in India throug...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document summarizes a research paper that examines factors influencing voluntary auditor changes in companies listed on the Indonesia Stock Exchange in 2018. The paper studies how audit opinion, auditor firm size, management changes, financial distress, and company growth may impact an organization's decision to change auditors. The researchers conducted a quantitative study of 64 companies using secondary data and statistical analysis to determine the effects of these factors. The results found that audit opinion, management changes, financial distress, and company growth did not significantly influence auditor turnover, but auditor firm size did have a significant positive impact on companies changing auditors.
This document discusses a comparative analysis of non-performing assets (NPAs) through rising asset levels conducted by Savio Basimalla at Thane Janata Sahakari Bank. It includes a declaration, certificate of completion, acknowledgements, table of contents, and executive summary describing the structure of the Indian banking sector and issues considered in reviewing and revising the banking structure. Key topics discussed include small banks vs large banks, universal banking models, continuous authorization of new banks, converting urban cooperative banks, bank consolidation, presence of foreign banks in India, and Indian banks' presence overseas.
1) The document discusses investment rating for replanting palm oil plantation companies in Sumatra, Indonesia. It provides background on palm oil production in Indonesia and issues with aging palm oil plants.
2) It aims to determine if replanting palm oil plantations in Sumatra qualify as "investment grade" according to Moody's ratings and how to improve the rating.
3) After analysis using Moody's rating system, the results found that replanting plantations in Sumatra received a rating of "Ba3" with "medium risk," qualifying as investment grade but improvements could attract more investors by lowering the risk.
This document summarizes a research article that examines factors affecting going concern audit opinions. The study analyzed 141 companies listed on the Indonesia Stock Exchange from 2012-2014. The results of the logistic regression analysis found that audit quality, company size, and managerial ownership affected the likelihood of a going concern audit opinion. However, the previous year's audit opinion, institutional ownership, growth, debt default, opinion shopping, bankruptcy prediction, audit committee activity, and audit committee membership did not affect the likelihood of a going concern audit opinion. The purpose of the study was to determine what factors influence the issuance of a going concern audit opinion for manufacturing companies listed on the Indonesia Stock Exchange.
This document analyzes the performance of Chinese listed companies before and after seasoned equity offerings. It examines four companies that conducted large private placements in 2012. Two companies, Guangdong Electric Power Development and Shanghai Tunnel Engineering, showed improved performance after the offering, indicating the funds were used efficiently. However, Henan Shuanghui Investment & Development and Hainan Airlines saw declining performance, likely due to inefficient use of funds and unhealthy financial structures. The analysis suggests that not all equity offerings benefit companies and investors, and listed firms should ensure capital is utilized effectively.
The Effect of Capital Structure on Firm Performance: Empirical Evidence from ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A project report on competitive intelligence for manthan services bangaloreBabasab Patil
The document discusses competitive intelligence and its importance for organizations to survive and thrive in today's competitive environment. It defines competitive intelligence as collecting and analyzing information about competitors to create actions that benefit a company. It also outlines the competitive intelligence process, which includes planning, collection of internal and external data, analysis, production of intelligence reports, and dissemination of information. The goal is to minimize threats from competitors by gaining an understanding of their strategies, capabilities, customers and markets.
Annamalai MBA 2nd year General 346 Solved Assignment 2021palaniappann
Sir/ Madam
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects from Marketing, Finance, Human Resource Management, Information Systems, International Business and General Specializations. He has written many research papers and case studies.
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA Assignment help and MBA Project help. Many clients national and international has appreciated Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects and MBA subject coaching.
You can call him on his mobile no. 9025810064 (whatsapp available) or mail him at palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com.
Contact:
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD
Mail ID: palaniappanmail@gmail.com
Ph: - 9025810064 (whatsapp available)
1. Please detail your efforts to extend banking products and services to wider parts of the community.
2. Banks face many challenges – new regulations, more competition, slowing growth in some markets. Please describe your strategy for keeping your bank’s returns high?
3. Why you choose Banking Career?
4. Loan against Share. Should Banking Industry Promote or Not?
5. What particular actions provided your bank with significant success or market advantage over the past 12-15 months?
The document discusses Nestle India's efforts to promote sustainable agriculture and water stewardship. It describes projects Nestle has partnered on to introduce more efficient cultivation techniques for water-intensive crops like rice and sugarcane in the Kabini River basin. These techniques aim to benefit farmers through higher yields and lower costs while reducing water usage and promoting better soil health. The document also outlines Nestle's work with coffee and milk farmers to raise awareness on water conservation practices like drip irrigation, recycling, and optimizing water use.
This document analyzes the operation mode of Capitaland's Real Estate Investment Trusts (REITs) in Singapore and discusses implications for China's real estate industry. It finds that Capitaland uses a "dual-fund" model where private equity funds incubate early-stage projects that are later injected into REITs for stable income and asset realization. Key characteristics include covering the entire industry chain from development to asset management, and pairing private funds and REITs to accelerate investment cycles. When applying this model in China, adjustments should be made for differences in economic/cultural environment, and rental housing REITs could serve as pilots given China's current conditions.
The impact of merger and acquisition of the performance and growth of banks inBalaramDhara
The document appears to be a project submitted for a Master's degree that examines the impact of mergers and acquisitions on the performance and growth of banks in India. It includes sections on an introduction/overview of the Indian banking sector, the conceptual framework used for the study, a literature review, research methodology, data analysis and interpretation, and conclusions. The project was conducted under the guidance of Dr. Jignesh Dalal to fulfill degree requirements at the University of Mumbai."
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MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTORRaku Daku
This document provides an overview of mergers and acquisitions that have occurred in the Indian banking sector. It discusses several major mergers such as HDFC Bank and Times Bank in 1999, ICICI Bank acquiring Bank of Madura, and Global Trust Bank merging with UTI Bank. The motives for mergers are discussed, including improving competitiveness and shareholder value. Recommendations from the Narasimham Committee on banking reforms are summarized, including that mergers should not be used to bail out weak banks but could help strong banks. In conclusion, the Indian banking sector has generally destroyed shareholder wealth while mergers of strong banks tend to create value.
Mergers and Acquisitions in Indian Banking Sector A Case of Bharat Overseas B...ijtsrd
Mergers and Acquisitions MandAs continue to be a significant force in the restructuring of the financial services industry. The Indian Commercial Banking Sector, which has played a pivotal role in the country’s economic development, is currently passing through an exciting and challenging phase. The present research papers studies the impact of MandA on the financial performance of Bharat Overseas Bank and Indian Overseas Bank. The study uses key financial ratios to find the impact of MandA on financial performance of selected banks. Dr. Soniya Gambhir "Mergers and Acquisitions in Indian Banking Sector (A Case of Bharat Overseas Bank and Indian Overseas Bank)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38415.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38415/mergers-and-acquisitions-in-indian-banking-sector-a-case-of-bharat-overseas-bank-and-indian-overseas-bank/dr-soniya-gambhir
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Yes, I think the merger between Kotak Mahindra Bank and ING Vysya Bank would help the Indian banking industry for the following reasons:
1. It leads to consolidation in the banking sector by reducing the number of players. This helps strengthen the overall banking system by creating larger and more robust banks that are better able to withstand financial shocks.
2. The combined entity gains significant synergies from an expanded branch network, larger customer base, and greater resources. This allows it to offer more products and services to more customers across India.
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Quantitative Analysis on Financial Performance of Merger and Acquisition of I...IJAEMSJORNAL
This document summarizes a research article that analyzes the financial performance of mergers and acquisitions of Indian companies. It provides background on mergers and acquisitions (M&A) and financial performance metrics. It then reviews previous literature on the financial effects of M&As. The research methodology examines financial ratios of 10 major Indian M&As from 2006-2011, comparing pre- and post-M&A periods using t-tests. The data analysis section calculates various financial ratios including return on investment, return on long-term funds, and return on assets. It finds some improvement in ratios for a few firms but overall no significant changes in financial performance after the M&As.
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Working capital management on kotak mahindra groupProjects Kart
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This document summarizes research on bank profitability and efficiency in India and other countries. It discusses several studies that have analyzed the profitability and efficiency of Indian banks using different methods like DEA analysis and stochastic frontier analysis. The studies found that public sector banks were generally more efficient than foreign banks, which were slightly more efficient than private sector banks. Other key findings included declining efficiency of public sector banks over time, while foreign bank efficiency improved. The document also summarizes some international studies on the impact of deregulation on bank profitability efficiency in countries like Spain.
The document summarizes a research article about mergers and acquisitions in the Indian banking industry, specifically focusing on ICICI Bank Ltd. It discusses ICICI Bank's acquisition of nine other financial firms to facilitate its growth. The article is divided into four parts: 1) an introduction to mergers and acquisitions, 2) ICICI Bank's historical background and acquisitions, 3) a detailed discussion of each acquisition, and 4) a conclusion on the importance of strategic planning for mergers. A literature review examines factors important for managing mergers effectively such as communication, corporate culture, stress, and human resource issues.
This document is a project report submitted to N.R. Vekaria Institute of Business Management Studies by two students, Chirag D. Rupareliya and Amit Parmar, as part of their MBA program. The report provides an analysis of various investment avenues with a special focus on mutual funds offered by State Bank of India. It includes an overview of the mutual fund industry globally and in India, descriptions of major companies and their product profiles, and analyses of industry growth, SBI mutual fund's financial ratios and returns. The conclusion recommends investing in high-performing mutual funds to benefit from tax savings.
A STUDY ON MERGER AND ACQUISITION IN INSURANCE INDUSTRY IN INDIANat Rice
This document discusses a study on mergers and acquisitions (M&A) in the Indian insurance industry between 2010-2018. The study examines the effects of M&A on the profitability, capital efficiency, liquidity, and solvency of Reliance Nippon Life Insurance Company through an analysis of financial ratios before and after an acquisition. The study found M&A had a positive effect on profitability and capital efficiency but no significant impact on liquidity or solvency. Overall, the performance of the insurance company improved following the M&A activity.
Corporate Governance Practices of Indian Public Sector and Private Sector Ban...scmsnoida5
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The document provides an introduction and overview of a study on the role of financial ratios for IDBI Bank in lending to organizations. It discusses the objectives of the research, which are to understand the importance of financial ratios, IDBI Bank's use of ratios in lending decisions, and evaluation techniques. The methodology discusses collecting secondary data from sources like magazines, books, and IDBI Bank reports and using ratio analysis and tables/graphs for analysis and representation.
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MERGERS AND ACQUISITIONS PROSPECTS: INDIAN BANKS STUDY
1. ISSN: 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Vol. 1, Issue 3, pp: (10-17), Month: October - December 2014, Available at: www.paperpublications.org
Page | 10
Paper Publications
MERGERS AND ACQUISITIONS
PROSPECTS: INDIAN BANKS STUDY
1
Dr.Smita Meena, 2
Dr.Pushpender Kumar
1,2
Assistant Professor, KNC, University Of Delhi, Delhi, INDIA
Abstract: This research paper looks at Mergers and Acquisitions (M&A’s) that have happened in Indian banking
sector to understand the resulting synergies and the long term implications of the merger. The paper also analyses
emerging future trends and recommends steps that banks should consider for future. The paper reviews the trends
in M&A’s in Indian banking and then impact of M&A’s has been studied in three leading banks of India. The
study covers the area of performance evaluation of M&A’s in Indian banking sector during the period from 2000
to 2013. The paper compares pre and post merger financial performance of merged banks with the help of
financial parameters like, Net Profit margin, operating Profit margin, Return on Capital Employed, Return on
Equity, earnings per share, capital adequacy ratio, dividend per share etc. The findings suggest that to some extent
M&A’s has been successful in Indian banking sector. The Government and Policy makers should not promote
merger between strong and distressed banks as a way to promote the interest of the depositors of distressed banks,
as it will have adverse effect upon the asset quality of the stronger banks.
Keywords: Strategic alliance, Capital adequacy, Mergers, Consolidation, Ratios.
I. INTRODUCTION
In today's global marketplace, banking organizations have greatly expanded the scope and complexity of their activities
and face an ever changing and increasingly complex regulatory environment. It has been realized globally that M&A is
only way for gaining competitive advantage domestically and internationally and as such the whole range of industries are
looking for strategic acquisitions within India and abroad. Today, the banking industry is counted among the rapidly
growing industries in India. In the last two decades, there has been paradigm shift in banking industries. A relatively new
dimension in the Indian banking industry is accelerated through M&A. In order to attain the economies of scale and also
to combat the unhealthy competition Consolidation of Indian banking sector through M&A’s on commercial
considerations and business strategies are the essential pre-requisite. Consolidation has been a significant strategic tool
and has become a worldwide phenomenon, driven by advantages of scale-economies, geographical diversification, and
lower costs through branch and staff rationalization, cross-border expansion and market share concentration. The new
Basel II norms have also led banks to consider M&As.
II. RESEARCH METHODOLOGY
Objectives:
1. To study the trends of M&A’s in Indian banking sector.
2. To study the performance of the banks in the pre and post M & A.
Sample Selection:
The study analyses three major Banks undergone Mergers and acquisition. These are –
1. ICICI BANK
2. ISSN: 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Vol. 1, Issue 3, pp: (10-17), Month: October - December 2014, Available at: www.paperpublications.org
Page | 11
Paper Publications
2. STATE BANK OF INDIA
3. HDFC
Sources of Data
The secondary data is collected for the study. The required data for the study were collected and compiled from the CMIE
data base and the annual reports of the banks. The study covers a period from 2000-2013. In addition, the other required
data were collected from various journals and magazines.
Limitation
1. The study ignores the impact of possible differences in the accounting methods adopted by different companies.
2. The factors which effect the M & A performance may not be same for all companies.
3. The cost of acquisition for mergers is not considered in the methodology.
Literature Review
Merger of two weaker banks or merger of one healthy Bank with one weak bank can be treated as the faster and less
costly way to improve profitability then spurring internal growth (Franz, H. Khan 2007). Mergers also help in the
diversification of the products, which help to reduce the risk. Anand Manoj & Singh Jagandeep (2008) studied the impact
of merger announcements of five banks in the Indian Banking Sector these mergers were the Times Bank merged with the
HDFC Bank, the Bank of Madurai with the ICICI Bank, the ICICI Ltd with the ICICI Bank, the Global Trust Bank
merged with the Oriental Bank of commerce and the Bank of Punjab merged with the centurion Bank. Mehta Jay &
Kakani Ram Kumar (2006) stated that there were multiple reasons for M&A’s in the Indian Banking Sector and its
simply because of the strict control regulations had led to a wave of M&A’s in the Banking industry and states many
reason for merger in the Indian Banking sector. Kuriakose Sony et al., (2009), focused on the valuation practices and
adequacy of swap ratio fixed in voluntary amalgamation in the Indian Banking Sector and used swap ratio for valuation of
banks, but in most of the cases the final swap ratio is not justified to their financials. Kuriakose Sony & Gireesh Kumar G.
S (2010) in their paper, assessed the strategic and financial similarities of merged Banks, and relevant financial variables
of respective Banks were considered to assess their relatedness. The result of the study found that only private sector
banks are in favour of the voluntary merger wave in the Indian Banking Sector.
III. IMPACTS OF MERGER & ACQUISITIONS
1. Growth: Companies that desire rapid growth in size or market share or diversification in the range of their products
may find that a merger can be used to fulfill the objective instead of going through the time consuming process of internal
growth or diversification. The firm may achieve the same objective in a short period of time by merging with an existing
firm.
2. Synergy: The merged entity has better ability in terms of both revenue enhancement and cost reduction. Mergers and
Acquisition allows firms to obtain efficiency gains through cost reductions(cost synergies) & revenue increases( revenue
synergies).
3. Purchase Of Assets At Bargain Prices: M&A’S have the opportunity to acquire assets, particularly land mineral rights,
plant and equipment, at lower cost than would be incurred if they were purchased or constructed at the current market
prices.
4. Enhanced Managerial Skills: Occasionally a firm with good potential finds it unable to develop fully because of
deficiencies in certain areas of management or an absence of needed product or production technology. If the firm cannot
hire the management or the technology it needs, it might combine with a compatible firm that has needed managerial,
personnel or technical expertise.
5. Acquiring New Technology: To stay competitive, companies need to stay on top of technological developments and
their business applications. By buying a smaller company with unique technologies, a large company can maintain or
develop a competitive edge.
3. ISSN: 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Vol. 1, Issue 3, pp: (10-17), Month: October - December 2014, Available at: www.paperpublications.org
Page | 12
Paper Publications
6. Broader Array Of Products: When two firms merge they have diversified variety of products and after the merger each
consumer in both the firms will be benefited with the range of products or services to choose from M&A’s helps firms to
widen its consumer portfolio but it also leads to a more diversified range of services .
7. Income Tax Advantages: In some cases, income tax consideration may provide the financial synergy motivating a
merger. Tax concessions act as a catalyst for a strong bank to acquire distressed banks that have accumulated losses and
unclaimed depreciation benefits in their books.
8. Own Developmental Plans: The purpose of acquisition is backed by the acquirer companies own developmental plans.
A company thinks in terms of acquiring the other company only when it has arrived at its own development plan to
expand its operation having examined its own internal strength. It has to aim at suitable combination where it could have
opportunities to supplement its funds by issuance of securities; secure additional financial facilities eliminate competition
and strengthen its market position.
9. Strategic Purpose: The Acquirer Company view the merger to achieve strategic objectives through alternative type of
combinations which may be horizontal, vertical, product expansion, market extensional or other specified unrelated
objectives depending upon the corporate strategies.
10. Corporate Friendliness: Although it is rare but it is true that business houses exhibit degrees of cooperative spirit
despite competitiveness in providing rescues to each other from hostile takeovers and cultivate situations of collaborations
sharing goodwill of each other to achieve performance heights through business combinations.
IV. MERGER AND ACQUISITION IN INDIAN BANKING – PRESENT SCENARIO
In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, Indian banking system has
reached even to the remote corners of the country. This is one of the main aspects of India's banking growth story. The
first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The
largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June
1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two
being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British
East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India in 1955. The Government of India issued an ordinance and nationalised the
14 largest commercial banks in 1969. These banks have 85 per cent of bank deposits in the country. A second round of
nationalisation of 6 more commercial banks took place in 1980. Nationalisation took place so that government get more
control of credit delivery. With the second round of nationalisation, 91% of banking business was held by the
Government of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank.
The Indian Banking Sector: The history of Indian banking can be divided into three main phases :
Phase I (1786- 1969) - Initial phase of banking in India when many small banks were set up
Phase II (1969- 1991) - Nationalisation, regularisation and growth
Phase III (1991 onwards) - Liberalisation and its aftermath
Reasons for Bank Merger
1) Merger of weak banks: Practice of merger of weak banks with strong banks was going on in order to provide stability
to weak banks but Narsimhan committee opposed this practice. Mergers can diversify risk management.
2) Increase market competition: Innovation of new financial products and consolidation of regional financial system are
the reasons for merger. Markets developed and became more competitive and because of this market share of all
individual firm reduced so mergers and acquisition started.
3) Economies of scale: Capability of generating economies of scale when firms are merged.
4) Skill & Talent: Transfer of skill takes place between two organisation takes place which helps them to improve and
become more competitive.
4. ISSN: 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Vol. 1, Issue 3, pp: (10-17), Month: October - December 2014, Available at: www.paperpublications.org
Page | 13
Paper Publications
5) Technology, New services and Products: Introduction of e- banking and some financial instruments / Derivatives.
Removal of entry barrier opened the gate for new banks with high technology and old banks can’t compete with them so
they decide to merge.
6) Positive Synergies: When two firms merge their sole motive are to create a positive effect which is higher than the
combined effect of two individual firms working alone. Two aspects of it are cost synergy and revenue synergy.
Few other reasons
• Sick banks survived after merger & Enhanced branch network geographically.
• Larger customer base (rural reach)& Increased market share.
• Attainment of infrastructure & restrict competition and prevent overcrowding of banks & utilize under and unutilized
resources so that the banks can compete the foreign banks in global era.
Table-1: LIST OF M&A’S IN INDIAN BANKING INDUSTRY SINCE POSR LIBERALIZATION REGIME
YEAR ACQUIRER TARGET TYPE/MOTIVE
1993 Punjab National Bank New Bank of India Forced Merger
1993 Bank of India Bank of Karad Ltd. Forced Merger
1996 State Bank of India Kashinath Seth Bank Forced Merger
1997 Oriental Bank of Commerce Punjab Co-operative Bank td. Forced Merger
1997 Oriental Bank of Commerce Bari Doab Bank Ltd. Forced Merger
1999 Union Bank of India Sikkim Bank Ltd. Forced Merger
2000 HDFC Bank Ltd. Times Bank Voluntary Merger
2001 ICICI Bank Bank of Madura Voluntary Merger
2002 ICICI Bank ICICI Limited Voluntary Merger
2002 Bank of Baroda Benaras State Bank Ltd. Forced Merger
2003 Punjab National Bank Nedungadi Bank Ltd. Forced Merger
2004 Bank of Baroda South Gujarat Local Area bank Forced Merger
2004 Oriental Bank of Commerce Global Trust Bank Forced Merger
2005 Centurion Bank Bank of Punjab Voluntary merger
2006 Federal Bank Ganesh Bank of Kurandwad Forced merger
2006 IDBI Bank United western Bank Forced merger
2006 Centurion Bank of Punjab Lord Krishna Bank Voluntary merger
2007 ICICI Bank Sangli Bank Voluntary merger
2007 Indian Overseas Bank Bharat overseas Bank Compulsory merger
2008 HDFC Bank Centurion Bank of Punjab Voluntary merger
2008 State bank of India state bank of saurastra Voluntary merger
2010 ICICI Bank Ltd The Bank of Rajasthan acquisition
2010 state bank of India State bank of Indore acquisition
Source: Compiled from Report on Trend and Progress of Banking in India, RBI, various issues.
ICICI BANK
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned
subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal
1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business
from a development financial institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
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In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed
on the NYSE.
Table -2: Key financial indicators of ICICI BANK
(In billion except per share data)
ICICI
BANK
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net interest
income
21.85 29.32 39.07 56.37 73.04 83.67 81.14 90.17 107.34 138.66
Earnings per
share (Basic)
26.66 27.55 32.49 34.84 39.39 33.76 36.14 45.27 56.11 72.20
Earnings per
share
(Diluted)
26.44 27.33 32.15 34.64 39.15 33.70 35.99 45.06 55.95 71.93
Total assets 1,252.2
9
1,676.5
9
2,513.8
9
3,446.5
8
3,997.9
5
3,793.0
1
3,634.0
0
4,062.3
4
4,890.6
9
5,367.9
5
Equity
capital
&Reserves
80.1 125.50 222.06 243.13 464.71 495.33 516.18 604.05 604.05 667.06
Total capital
adequacy
ratio
10.4% 11.8% 13.4% 11.7% 14.0% 15.5% 19.4% 19.5% 18.5% 18.7%
Profit after
tax
16.37 20.05 25.40 31.10 41.58 37.58 40.25 51.51 64.65 83.25
Dividend per
share
7.5 8.5 8.5 10 11 11 12 14 16.5 20
Deposits 681.09 998.19 1,650.8
3
2,305.1
0
2,444.3
1
2,183.4
8
2,020.1
7
2,256.0
2
2,555.0 2,926.1
3
Advances 626.48 914.05 1,461.6
3
1,958.6
6
2,256.1
6
2,183.1
1
1,812.0
6
2,163.6
6
2,537.2
8
2,902.4
9
(SOURCE- BANK ANNUAL REPORT)
ANALYSIS AND INTERPRETATION
The ICICI bank had undergone M&A four times and is now one of the leading bank in India with increasing financial
status.Net interest income ,earnings per share, total assets ,equity capital & reserves, total capital adequacy ratio ,profits
after tax are showing a continuous increasing trend throughout ten years. Deposits reduced marginally from year 2009-
2011 but again increased in 2013.similarly advances also showed declining trend for year 2009-2011,but again increased
in year 2013. Performance Review – Quarter ended March 31, 2014
Consolidated profit after tax crosses the ₹ 10,000 crore milestone
18% year-on-year increase in standalone profit after tax to ₹ 9,810 crore (US$ 1.6 billion) for the year ended March 31,
2014 (FY2014) from ₹ 8,325 crore (US$ 1.4 billion) for the year ended March 31, 2013 (FY2013)
15% year-on-year increase in standalone profit after tax to ₹ 2,652 crore (US$ 443 million) for the quarter ended March
31, 2014 (Q4-2014) from ₹ 2,304 crore (US$ 385 million) for the quarter ended March 31, 2013 (Q4-2013)
15% year-on-year increase in consolidated profit after tax to ₹ 11,041 crore (US$ 1.8 billion) for FY2014 from ₹ 9,604
crore (US$ 1.6 billion) for FY2013
Operating profit increased by 24% to ₹ 4,454 crore (US$ 743 million) for Q4-2014 from ₹ 3,605 crore (US$ 602 million)
for Q4-2013
23% year-on-year increase in retail advances at March 31, 2014
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Current and savings account (CASA) ratio at 42.9% at March 31, 2014; year-on-year growth of 16% in CASA deposits
Net interest margin improved to 3.33% in FY2014 compared to 3.11% in FY2013; Q4-2014 NIM at 3.35%
Total capital adequacy of 17.70% and Tier-1 capital adequacy of 12.78% as per Reserve Bank of India's guidelines on
Basel III norms
STATE BANK OF INDIA
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of Calcutta, later renamed
the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other
two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras(incorporated on 1 July 1843).
All three Presidency banks were incorporated as joint stock companies and were the result of royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right was
taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised
banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but
without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the
Imperial Bank of India became the State Bank of India.
Table-3: Key financial indicators of state bank of India
SBI 2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
Net Interest
income
13,945 15,589 15,058 17,021 20,873 23,671 32,526 43,291 44,329 49,282
Net Profit 4,305 4,407 4,541 6,729 9,121 9,166 8,265 11,707 14,105 10,891
Return on
Average
Assets
0.99 0.89 0.84 1.01 1.04 0.88 0.71 0.88 0.97 0.65
Return on
equity( %)
18.10 15.47 14.24 17.82 15.07 14.04 12.84 14.36 15.94 10.49
Earnings Per
Share
81.79 83.73 86.10 126.62 143.77 144.37 130.16 184.31 210.06 156.76
Dividend Per
Share
12.50 14.00 14.00 21.50 29.00 30.00 30.00 35.00 41.50 30.00
SBI Share
(Price)
654.80 968.50 994.45 1,600.2
5
1,067.1
0
2,078.2
0
2,765.3
0
2,096.3
5
2,072.7
5
1,917.7
0
CapitalAdequ
acy Ratio
-- - - - 85,393 90,975 98,530 1,16,32
5
1,29,36
2
1,45,84
5
(source-bank annual reports) In crores except % and share price
ANALYSIS AND INTERPRETATION
SBI is the first leading bank in India.The financial indicators like net interest income,earnings per share ,net profit were
on increasing trend till year 2009-10 then it declined marginally during 2010-11.But after 2011-12 it shows a rising
trend.The decline may be due to the cost of M&A during the year 2008 and 2010. FY14 OVER FY13- Operating Profit
increased from Rs.40, 922 crores in FY13 to Rs.42, 097 crores in FY14 (2.87% YoY growth). Net Profit (after minority
interest) decreased from Rs.17,916 ccrores in FY13 to Rs.14,174 crs in FY14(-20.89% YOY growth ). Earnings per Share
declined by 23.54% from Rs.267 in FY13 to o Rs.204 in FY 14.
HDFC BANK
HDFC Bank is the fifth largest bank in India by assets, incorporated in 1994. It is the largest bank in India by market
capitalization as of 24 February 2014. As on Jan 2 2014, the market cap value of HDFC was around USD 26.88B, as
compared to Credit Suisse Group with USD 47.63B.The bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1 977) of India. As of 31 March 2013, the bank had assets of
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INR 4.08 trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the
previous fiscal year. Its customer base stood at 28.7 million customers on 31 March 2013.
Table -4: Key financial indicators of HDFC BANK
HDFC BANK 2001-
2002
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
2010-
2011
2011
-
2012
2012-
2013
Earnings per
share
11.01 13.75 17.95 22.92 27.92 36.29 46.22 52.85 67.56 85.02 22.11 28.49
Return on
Average Net
worth
18.30
%
18.10
%
20.14
%
20.44
%
17.47
%
19.40
%
16.05
%
16.12
%
16.80
%
16.52
%
18.37
%
20.07
%
Tier 1 Capital
Ratio
10.81
%
9.49
%
8.03
%
9.60
%
8.55
%
8.58
%
10.30
%
10.58
%
13.26
%
12.23
%
11.60
%
11.08
%
Total Capital
Ratio
13.93
%
11.12
%
11.66
%
12.16
%
11.41
%
13.08
%
13.60
%
15.69
%
17.44
%
16.22
%
16.52
%
16.80
%
Dividend per
share
2.50 3.00 3.50 4.50 5.50 7.00 8.50 10.00 12.00 16.50 4.30 5.50
Dividend
payout ratio
23.68
%
24.72
%
22.15
%
24.00
%
22.55
%
22.92
%
22.17
%
22.17
%
21.72
%
22.72
%
22.70
%
22.77
%
Book value per
share
69.00 79.60 94.52 145.8
6
169.2
4
201.4
2
324.3
9
344.3
1
470.1
2
545.4
6
127.5
2
152.2
0
Market price
per share
236.6
0
234.5
5
378.7
5
573.6
4
774.2
5
954.1
5
1,331
.25
973.4
0
1,933
.50
2,345
.85
519.8
5
625.3
5
Price to
Earnings Ratio
21.50 17.06 21.10 25.03 27.74 26.29 28.80 18.42 28.62 27.59 23.51 21.95
(SOURCE- BANK ANNUAL REPORT)
ANALYSIS AND INTERPRETATION
As per the ten year data earnings per share, Return on average net worth, capital ratio, dividend per share, book value per
share and market price per share are showing an upward trend upto the year 2010-11 but after that it showed a declining
trend in 2011-13. The cause for this decline may be or may not be acquisition of centurion bank of Punjab ltd. in year
2008-09. HDFC Bank has showed a 27 per cent rise in net profit at Rs. 1,982 crore in the July-September quarter of
FY’14 compared with Rs. 1,560 crore in the same quarter last year. The country’s second largest private sector lender
broke its own record of posting 30 per cent growth in net profit for 54 consecutive quarters. The marginal decline was due
to lower-than-expected net interest income and margin.
Net interest margin during the quarter fell to 4.3 per cent from 4.4 per cent. This reduction was due to the RBI’s tight
liquidity measures taken in July. During the quarter, net interest income grew 15 per cent to Rs. 4,476.5 crore
from Rs. 3,882 crore in the same quarter last year. Non-interest income increased 25 per cent to Rs. 1,844 crore
from Rs. 1,472 crore in Q2 FY’13. Gross non-performing assets (NPAs) increased to 1.1 per cent of total advances
against 0.9 per cent in the second quarter last year. Net non-performing assets were up at 0.3 per cent from 0.2 per cent.
As on June 30, 2013, total advances grew 16 per cent year-on-year to Rs. 2.69 lakh crore. Retail loan segment growth was
17 per cent, while wholesale loans grew 15 per cent resulting in a retail: wholesale loan mix of 53:47. Total deposits as of
September 30, 2013 were at Rs. 3.13 crore, an increase of 14 per cent over September 30, 2012. Savings account deposits
grew 18 per cent.
V. SUGGESTIONS
1. Banks can work towards a synergy based merger plan with minimisation of technology-related expenditure.
2. There is also a need that merger or large size is just a facilitator, but no guarantee for improved profitability.
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3. The thrust should be on improving risk management capabilities, corporate governance and strategic business planning.
4. In the short run, attempt options like outsourcing, strategic alliances, etc. can be considered. Banks need to take
advantage of this fast changing environment, where product life cycles are short, time to market is critical in deciding who
wins in future.
5. The Government should not go for M&As as a means of bailing out of weak banks. The strong banks should not be
merged with weak banks, as it will have adverse affect upon the asset quality of the stronger banks.
6. The strong banks should be merged with strong banks to compete with foreign banks and to enter in the global financial
market.
VI. CONCLUSION
The banking industry has been undergoing major Mergers and Acquisitions in the recent years, with a number of global
players emerging through successive .Mergers and Acquisitions in all sectors including banking. The present study
indicates that the pre and post- Mergers and Acquisitions of selected banks in India have no greater changes in
profitability ratio; a few banks are satisfactory during the study period. The study highlights that even after ten years of
merger, the firms couldn’t improve their performance. Similar decline in performance is observed matching firms. Thus,
the decline in the performance of merging firms cannot be attributed to merger alone. But in future, there are strong
prospects of improvements in profitability. But overall, results indicate that mergers led to higher level of cost efficiencies
for the merging banks. Merger between distressed and strong banks did not yield any significant efficiency gains to
participating banks. However, the forced merger among these banks succeeded in protecting the interest of depositors of
weak banks but stakeholders of these banks have not exhibited any gains from mergers.
The empirical findings of this study suggest that trend of merger in Indian banking sector has so far been restricted to
restructuring of weak and financially distressed banks. The Indian financial system requires very large banks to absorb
various risks that have been emerged from operating in local and global market. The prime factors for future mergers in
Indian banking industry included the Basel –II environment, challenges of free convertibility and requirement of large
investment banks. Therefore, the Government and policy makers should be more cautious in promoting merger as a way
to reap economies of scale and scope.
REFERENCES
[1] Ghosal, (2010). “Consolidation of Banks”, the Indian Banker, Vol. V, No.2, p.p. 28-35.
[2] Aloke Ghosh (2001), “Does operating performance really improve following corporate Acquisition?” Journal of
corporate finance, Vol 7, pp .151-178.
[3] Ansari,Muhammd Sadiq (2007) “ An Empirical Investigation of Cost Efficiency in the Banking Sector of
Pakistan,” SBP Research Bulletin , 3(2)
[4] Denizer CA, Dine M, Tarimcilar M (2007), “Financial Liberalization and Banking Efficiency: Evidence from
Turkey Analysis,” Journal of Productivity, 27: 177-195.
[5] Goyal, K. A. and Joshi, V. (211). Mergers in Banking Industry of India: Some Emerging Issues. Asian Journal of
Business and Management Sciences, 1(2), 157-165.
[6] Murthy, G. K. (2007). Some Cases of Bank Mergers in India: A Study. In Bose, J. (Ed.), Bank Mergers: The
Indian Scenario. (244-259). Hyderabad: The ICFAI University Press.