Merger and Acquisition in Indian Banking Sector: A Case Study of Bank of Baroda

18 Pages Posted: 1 Feb 2022

See all articles by Dr. Chetan Kashyap

Dr. Chetan Kashyap

Landmark Institute of Management and Technology

Date Written: December 8, 2021

Abstract

Now a days, Mergers and acquisitions in the Banking sector are very important for the growing of Indian Banking Sector. This can be achieved through Cost Reduction and Increasing Revenue. Merger and acquisition emerge as a reality. Bank mergers are one of the strategies for strengthening the Indian Economy by enhancing the banking sector. The Government of India is pursuing the policy of amalgamating public-sector bank. On 1 April 2019, the merger of Vijaya Bank and Dena Bank with the Bank of Baroda came into effect. After the merger, Bank of Baroda became the third largest bank and second largest public sector bank to serving banking and strengthening the Indian Economy This research paper looks at Mergers and Acquisitions (M&A’s) that have happened in Indian banking sector to understand the resulting synergies and the long term implications of the merger. The paper also analyses recent trends in banks regarding the Mergers and Acquisitions.

The study covers the reasons for bank Mergers and Acquisitions in Indian banking sector. It also studies Bank of Baroda and its Associates merger with Vijaya Bank and Dena bank, the timeline of merger and acquisition of BOB, effects of Mega merger on BOB and analyzing the Operational and financial performance of Bank of Baroda through Pre and Post-Merger period with the help of various parameters. The findings suggest that to some extent M&A’s has been successful in Indian banking sector. The conclusion of this study that the mergers of BOB would help in better management of capital. Along with merger the focus should be on adequate reforms in governance and management of these banks. Finally the area of service is more widened due to merger. Bank of Baroda has experienced positive impact due to merger. This comparative study includes data was collected from secondary sources such as websites, articles and annual reports and analysis has been shown with the help of charts.

Keywords: Corporate Finance, Corporate Governance

JEL Classification: G34

Suggested Citation

Kashyap, Dr. Chetan, Merger and Acquisition in Indian Banking Sector: A Case Study of Bank of Baroda (December 8, 2021). Available at SSRN: https://ssrn.com/abstract=3980653 or http://dx.doi.org/10.2139/ssrn.3980653

Dr. Chetan Kashyap (Contact Author)

Landmark Institute of Management and Technology ( email )

India

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