Merger And Acquisition Analysis Of Bob, Dena And Vijaya Bank

Abstract

Indian banking histories reveal that Indian banking seeds were sown in the 18th century, when the Central Bank of India and the Bank of Hindustan were estalblished in 1786 and 1790, respectively. Then, banks such as Bank of Bengal, Bank of Mumbai and Bank of Madras were formed by the charter of the British East India Company. In 1921, the three banks brought the Indian Imperial Bank together and established it, which became the Indian State Bank. The Bank of India, Baroda Bank, Corporate Bank, Indian Bank and Central Bank of India was founded between 1906 and 1911, and now they have survived. The banking industry in India is divided into two periods: the time of pre-liberalization and the time after 1991. During the pre-liberalization period of 1969, the Indian government nationalized the 14 largest trading banks. In 1980, a second nationalization dose was taken by six more commercial banks. A more regulated credit provision by the government justified the nationalization. The New Bank of India joined the National Bank of Punjab in 1993 subsequently. This was simply the merging of nationalized banks, which reduced the number of nationalized banks from 20 to 19.

The banking sector experienced a major shift during the post-liberalization period in early 1991; Narasimha Rao's government initiated its policy of liberalisation. The International Trust Bank, then mixed with Oriental, Axis Bank (formerly UTI Bank), ICICI Bank and HDFC Bank, has been allowed to hold a small number of deposits. This change enhanced the development of Indian banking. In addition to the rapid economic growth of India, followed by growth that all the three banks strongly supported, i.e. Government, private banks and foreign banks. Regulations and structural impacts of globalization on Indian banks have changed a lot. This industry has implemented several different approaches, which are productive and lead the world in the growing climate. In the restructuring process, Merger and merger were one such technique.