Driving Factors of Mergers and Acquisitions: Review of Selected Studies

The banking sector of India is considered as a growing sector and the soundness of the banking sector has been vital for the development of the country's economy. Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment Historically, mergers and acquisitions activity started way back in 1920 when the Imperial Bank of India was born when three presidency banks (Bank of Bengal, Bank of Bombay and Bank of Madras) were reorganized to form a single banking entity, which was subsequently known as State Bank of India. Globally mergers and acquisitions have become a major way of corporate restructuring and the financial services industry has also experienced merger waves leading to the emergence of very large banks and financial institutions. It drives the organization to create synergy and value creation by way of diversification and improved management. In the present paper the researcher has evaluated the various motives behind merger and acquisition in the banking sector.