Corporate Merger & Acquisition: A Strategic approach in Indian Banking Sector

It is an inherent desire and need of every business to grow vertically and horizontally. Organic growth, that is development from within, is often slow and sometimes difficult. Competition is fierce, and companies must team up to survive in an industry where specialized knowledge is king. That is why there is an increasing trend towards Mergers and Acquisitions. A complete combination of two separate corporations involving in a business is referred as business merger. A merger in the official sense is said to be worth when both businesses dissolve and double their assets and convert into a newly created third unit. Acquisitions on the other hand are take-over. In this case one company actually buys another company. In take-over or acquisition generally a larger company buys a smaller one. Mergers and Acquisitions encourage banks to gain global reach and better synergy and allow banks to acquire the stressed assets of weaker banks. Through Mergers and Acquisitions banks not only get established brand names, new geographies, complementary product offerings but also opportunities to cross sell to new accounts acquired.

The process of merger and acquisition is not a new to the Indian Banking. Our paper is an attempt to find the impact of Mergers and Acquisitions in Indian Banking Industry and their.position before and after merger and acquisition.