Mergers and Acquisitions in Indian Banking Sector: A Review of the Literature

Author:Hargun Sahni*, Hariom Gupta

Abstract:
Corporate restructuring has become a very important segment in the financial and economic environment. Banks are able to significantly reduce their costs and achieve a significant increase in their operations with the help of mergers and acquisitions in the banking sector. This theoretical framework aims to exhibit that how strong the arguments are supporting bank merger from the point of view of size, synergies and operations. Apart from this, the review paper aims to probe the financial impact of merger whether favorable or unfavorable, significant or insignificant, emerging from the merged entity. It also covers the non - financial implications arising from the perspective of personnel management and organizational behavior. This paper recommends that mergers and size are merely facilitators, the focus should be on enhancing corporate governance, risk management skills, and strategic business planning. Cultural conflicts arising between the merging entities should be set aside and human aspects of these mergers are taken good care of

Keywords:Mergers, Acquisition, Motives, Financial and Non Financial Implication.

DOI:

International Journal of Trade & Commerce (Vol: 11 Issue:2)