Mergers and Acquisitions in Indian Banking Sector – An Outline

Karthikeyan | Hema

Mergers | Indian Banking

Vol:3; No:1; Mar-17 | ISSN: 2455-3921

Banking sectors are facing many changes and undergoing changes by consolidation by means of mergers and acquisitions all over the world. Mergers and Acquisitions in banking sectors are due to economies of scale. Large banks are in a better position to introduce new technologies, reduce cost than small banks and which attract the customers. Mergers and Acquisitions (M&As) have resulted in universal banks in terms of total asset, products, and geographical locations. Banking size is considered as an important and efficient in today’s economy. Banking in India originated in the last decades of the 18th century. The first bank is Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and General Bank of India, established 1786 but failed in 1791. SBI originated as the Bank of Calcutta in June 1806. In 1809, it was renamed the Bank of Bengal. Amalgamation of the three presidency banks – Bank of Bengal, Bank of Bombay and Bank of Madras in 1921 to form the Imperial Bank of India, which upon India’s independence, became the State Bank of India on 1st July 1955. Mergers and Acquisitions in Indian Banking are not new and dates back from Imperial bank of India.

K.Karthikeyan, Associate Professor, Department of Commerce, Vivekananda College, India