Motives for Mergers and Acquisitions in the Indian Banking Sector - A Note on Opportunities & Imperatives

SPJCM Singapore Working Paper No. 06-13

11 Pages Posted: 22 Aug 2007  

Ram Kumar Kakani

Lal Bahadur Shastri National Academy of Administration (LBSNAA)

Jay Mehta

XLRI Jamshedpur - School of Human Resources

Date Written: November 2006

Abstract

Recent reports on banking sector often indicate that India is slowly but surely moving from a regime of 'large number of small banks' to 'small number of large banks'. The aim of this paper is to probe into the various motivations for mergers and acquisitions in the Indian Banking sector. Thus, literature is reviewed to look into the various motivations behind a banks' merger/ acquisition event. Given the increasing role of the economic power in the turf war of nations, the paper looks at the significant role of the state and the central bank in protecting customer's interests vis-à-vis creating players of international size. While, gazing at the mergers & acquisitions in the Indian Banking Sector both from an opportunity and as imperative perspectives, the paper also glances at the large implications for the nation.

Keywords: acquisitions, banking supervision, commercial banking, competition, India, international, mergers, motive

JEL Classification: G21, G28, G34, K21, L40

Suggested Citation

Kakani, Ram Kumar and Mehta, Jay, Motives for Mergers and Acquisitions in the Indian Banking Sector - A Note on Opportunities & Imperatives (November 2006). SPJCM Singapore Working Paper No. 06-13. Available at SSRN: https://ssrn.com/abstract=1008717 or http://dx.doi.org/10.2139/ssrn.1008717

Ram Kumar Kakani

Lal Bahadur Shastri National Academy of Administration (LBSNAA) ( email )

Mussorie, Uttarakhand 248179
India

Jay Mehta (Contact Author)

XLRI Jamshedpur - School of Human Resources ( email )

C H Area (E)
Jamshedpur, Jharkhand 831001
India

Paper statistics

Downloads
4,348
Rank
1,397
Abstract Views
18,422