This action might not be possible to undo. Are you sure you want to continue?
com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. SYNOPSIS ON MERGER & ACQUISITION IN BANKING SECTOR (WITH REFERENCE TO GLOBAL TRUST BANK WITH ORIENTAL BANK OF COMMERCE.) Submitted to: Guru jambheshwar University, Hisar in partial fulfillment for the degree of Master Of Business Administration (Session 2006-2008)
Under the Supervision of:Dr. N.S. Malik Professor HSB (GJU)
Submitted By:Arun kumar Roll No 0610417 MBA-Final (finance)
CONTENTS 1. Introduction a) Profile of Study b) Justification of Study 2. Objective of Study 3. Research Methodology & Analytical Tools a) Sampling & sample Survey b) Analytical Tool Statistical Tools c) Data Collection d) Limitations of Study 4. Result & Discussions/Findings
Chidambaram has said.final-yearprojects. The CSO’s estimates for 2005-06 places gross domestic savings (GDS) above 32 per cent of GDP and gross domestic investment (GDI) close to 34 per cent. India's per capita income is expected to rise to US$ 1. INTRODUCTION TO THE STUDY MERGERS A merger is a combination of two or more firms in which only one firm would survive and the other would cease to exist.0 per cent in 2005-06 to 9.2 per cent in 2006-07. according to a forecast made by McKinsey. which today accounts for 60 per cent of India's gross domestic product.5 trillion by 2025. 51.com/fyp/ One place for Projects. seminar. Consumption. NOTE:-This work is copyright to its Authors. Although the merger of firms in India is governed by the provisions of the companies act. it does not define these terms. according to a PricewaterhouseCoopers (PwC) report.cc/ http://troubleshoot4free. summer training report and lot more.co. while 73 per cent have no access to formal sources of credit. Similar data is not available for non-farm and urban households. are in rural areas and 89 million are farmer households. besides several others. overtaking Germany as the fifth-largest consumer market. Given the huge potential. SCHEME OF MERGER The main contents of model scheme are as listed:- . is set to quadruple to US$1. its assets/ liabilities being taken over by the surviving firm.http://www. Presentation. Out of the 203 million Indian households. the Indian economy has witnessed robust growth during 2006-07 for the fourth year in succession. according to data from the central bank's web site. The potential banking market waiting to be tapped in India is fairly huge. three-fourths. In this segment.Anil Dhirubhai Ambani Group. The Central Statistical Organisation (CSO) estimates that the real Gross Domestic Product (GDP) growth has accelerated from 9. INTRODUCTION Banking Sector in India According to the Annual Statement on Monetary Policy for the year 2007-08 released by the Reserve Bank of India (RBI). Per capita income stood at $797 in 2006/07. This is only for Educational Purpose.4 per cent have no access to formal or informal sources of credit. nearly double from US$ 460 in 2000-01 thanks to robust economic growth. Finance Minister P. corporate houses like the Tatas and Reliance . or 147 million.000 by the end of the 2007/08 fiscal year on the back of a 9 per cent economic growth. are said to be interested in having a slice of the banking pie. 1956. India could become the third largest banking hub in the world by 2040.
to obtain High Court’s approval ? Expenses of merger. ? Dividend position and prospects. Approval from Respective High Courts(s). summer training report and lot more.final-yearprojects. ? Protection of employment. This is only for Educational Purpose. 1956. ? Change of the.com/fyp/ One place for Projects. FEATURES OF SCHEME OF MERGER The essential features or pre-requisites for any scheme of merger are enumerated as below:I. Determination of the Effective Date. seminar. ? Their authorized. .co.http://www. Approvals for the Scheme. Approval from Shareholders. V. ? Management: Board of Directors. NOTE:-This work is copyright to its Authors. issued and subscribed/ paid up capital.cc/ http://troubleshoot4free. The basis of merger in the scheme should be the reports of the values of assets of both the merger partner companies. Determination of the Transfer Date (Appointed Date) II. effective date of merger. ? Application under Section 391 and 394 of the Companies Act. ? Description of the transfer and the transferee company and the business of the transferor. IV. III. ? Condition of the scheme to become effective and operative. Presentation. Approval from Creditors/ Financial Institutions/ Banks. their number and participation of transferee Company’s directors on the board. object clause and accounting year. VI.
Presentation.com/fyp/ One place for Projects. The Following Are The Steps Used To Evaluate Merger Decision:- .final-yearprojects. This is only for Educational Purpose. summer training report and lot more.cc/ http://troubleshoot4free. NOTE:-This work is copyright to its Authors.http://www.co. seminar.
March 31. • Its retail network and its synergies • Strategic advantages • Considered the interests of the millions of depositors of GTB • Evaluated the bank’s strengths and weaknesses. 2002 GTB’s audited balance sheet for march 31. The amalgamation came into force on August 14. summer training report and lot more. The option available with Reserve Bank was to compulsory merger under section 45 of the Banking Regulation Act. 2004. Presentation.400. UNDESIRABLE ACTIVITIES GTB was placed under directions relating to certain types of advances.co. RBI permitted GTB. certain premature withdrawal of deposits. showed net worth of Rs. However.. declaration of dividend and its capital market exposure.cc/ http://troubleshoot4free. LARGE VARIANCE IN GTB’S FINANCIAL POSITION AS REPORTED BY AUDITORS In view of very large variance in the assessment of GTB’s financial position as reported by auditors and by RBI’s inspectors.2002. an independent chartered accountant was appointed to reconcile the position. 2003 to publish the annual accounts.com/fyp/ One place for Projects.http://www. ? The government of India has sanctioned the scheme for amalgamation of the global trust bank ltd. This is only for Educational Purpose. ? Before the wide interest of the different parties had considered i.4 cr. when he gave huge unsecured loans to the stock broker and group companies of Zee Telefilms. RESERVE BANK OF INDIA’S SCHEME OF AMALGAMATION OF GLOBAL TRUST BANK WITH ORIENTAL BANK OF COMMERCE Global Trust Bank Ltd. (GTB) was placed under of Moratorium on July 24. COUNTDOWN TO COLLAPSE OF GLOBAL TRUST BANK This was a crisis in the making for the last three years. 2004.e. time up to September 30.final-yearprojects. RBI’s inspection revealed that net worth is negative. the RBI prepared draft scheme of amalgamation of GTB with OBC. . 40 cr. With the oriental bank of commerce. • Oriental bank of Commerce (OBC) interest was examined by the RBI keeping in view its financial parameters. seminar. 1949. KETAN PAREKH SECURITIES SCAM OF 2001 The genesis of the GTB collapses lies in now ousted promoter Ramesh Gelli’s involvement in the Ketan Parekh securities scam of 2001. NOTE:-This work is copyright to its Authors. & a profit of Rs. RBI also started monitoring GTB on monthly basis LOSSES IN ANNUAL ACCOUNTS For statutory audit.
http://www. Narasimham Committee on banking sector reforms has recommended drastic changes in the banking system. My study is confined to merger and acquisition in the banking industry and effect of this on the efficiency of the banks .co. the importance of efficiency has assumed a critical significance for the viability of the banks in India. PRO-DATA PAYMENT .. the shareholders may receive pro-data payment.com/fyp/ One place for Projects. 2004. while all the bad debts of the merged entity would be adjusted against the cash balances and reserves of the Hyderabad-based bank. This is only for Educational Purpose. Will be able to operate their accounts as customers of Oriental Bank of Commerce with effect from August 14. the Indian banking sector is on an upswing. as usual. Presentation. The amalgamation will come in to force on August 14. CUSTOMERS/DEPOSITORS OF GTB Customers.cc/ http://troubleshoot4free. summer training report and lot more.IF ANY SURPLUS REMAINS If any surplus remains after meeting all the liabilities out of the realization of the assets of the Global Trust bank Ltd. INCOME TAX EXEMPTIONS As part of the merger proposal. 2004. All the branches of Global Trust Bank Ltd with function as branches of Oriental Bank of Commerce with effect from this date. GLOBAL TRUST BANK IS NOW ORIENTAL BANK OF COMMERCE The Government of India has sanctioned the scheme for amalgamation of the Global Trust Bank Ltd. NOTE:-This work is copyright to its Authors. seminar. With the Oriental Bank of Commerce.final-yearprojects. Oriental Bank of Commerce is making necessary arrangements to ensure that service. JUSTIFICATION OF THE STUDY Indian economy clipping at 9 per cent. including depositors of the Global Trust bank Ltd. according to a PricewaterhouseCoopers (PwC) report With the changing scenario of the banking industry in the liberalised era. India could become the third largest banking hub in the world by 2040. is provided to the customers of the Global Trust bank Ltd. I choose two banks which are as follows:? Global trust bank ? Oriental bank of commerce . the OBC would get income tax exemptions in transferring the assets of GTB in its book during the merger process. consumption levels soaring and investment riding high.
Presentation.co.com/fyp/ One place for Projects.cc/ http://troubleshoot4free. • To trace it out the related issues in both pre and post merger case. • To study why the banks are going towards Merger & Acquisitions. summer training report and lot more. . • To find it out the basis of merger and acquisition. This is only for Educational Purpose. • To study the measures taken by the government to increase Merger & Acquisition in Banking Sector. OBJECTIVES OF THE STUDY Each study is carried out with some objectives and the objectives of this report are: • Analyze parameters for evaluation of both the companies. NOTE:-This work is copyright to its Authors. seminar.http://www.final-yearprojects.
com/fyp/ One place for Projects. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them.final-yearprojects. Research Design The research design is the conceptual structure within which research is conducted. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The search for knowledge through objective and systematic method of finding solution to a problem is a research. Organizations position before merger & acquisition traced. Meaning of Research Research is defined as “a scientific & systematic search for pertinent information on a specific topic”.cc/ http://troubleshoot4free. Research design can be of three types: ? Exploratory Research Design ? Descriptive Research Design ? Experimental Research Design . measurement and analysis of the data. Research is an art of scientific investigation. summer training report and lot more. RESEARCH METHODOLOGY Research methodology is a way to systematically solve the problem.http://www. Presentation. Research is a systemized effort to gain new knowledge. . iii. Whole case is divided into parts. This is only for Educational Purpose. it constitutes the blue print of the collection. NOTE:-This work is copyright to its Authors. The research methods which are going to be used are: 1) Explorative research 2) Case study (comparative analysis) i.co. It is a careful inquiry especially through search for new facts in any branch of knowledge. ii. It may be understood has a science of studying how research is done scientifically. seminar. The scope of research methodology is wider than that of research method. Organizations position after merger & acquisition traced.
the most important aspect of a statistical survey.final-yearprojects. seminar. The type of data used in the present study is secondary data. sampling denotes the selection of a part of the aggregate statistical material with a view to obtaining information about the whole.cc/ http://troubleshoot4free. people or events that have influenced our topic and also to determine what the major publications are and who the foremost authors are. v. For some topics it may be useful to consult a handbook or specialized encyclopedia first to establish a list of key terms.co. In the explorative research. Sources of primary data are: ? Questionnaire ? Observation ? Personal interview SECONDARY DATA: The secondary data on the other hand. in data. newspaper. in infact. are those which have already been collected by someone else and which have already been passed through the statistical processes. we include that information which is capable of numerical expression. For my study. Data collection is. Sampling and sample design Sampling method is that method in which data is collected from the sample of items selected from the population and conclusions are drawn from them. Expand understanding of the dilemma or problem. The method of selecting a sample out of a given population is called sampling. iii. ii. The various sources of data collection includes ? Internet ? Newspapers ? Magazines and journals . there are various methods of selecting a sample from a population in accordance with various needs. Nowadays. NOTE:-This work is copyright to its Authors. In other words. summer training report and lot more.com/fyp/ One place for Projects. Other reference materials should be incorporated into research strategy as needed.http://www. Websites. iv. Explorative phase begin with the literature search-a review of books as well as articles in journals or professional literature that relates to our dilemma. which are collected afresh and for the first time and thus happened to be original in character. DATA COLLECTION: PRIMARY DATA: The primary data are those. Identify sources for and actual questions that might be used as Measurement questions. In other words. magazines. Sources are:. Comparative evaluation of results is given. I will be using Secondary data. publications. The term data as used in statistics means quantitative data. This is only for Educational Purpose. Presentation. our objective is going to: i. Books. Comparison of both. A literature search requires that use of library online catalog and one or more bibliographic databases or indexes. Gather background information on topic to refine the research problem.
Further findings will be included after doing the whole research.cc/ http://troubleshoot4free. summer training report and lot more.http://www. (e-payment-railway tickets ) ? Change in debt recovery policy.final-yearprojects. NOTE:-This work is copyright to its Authors. Presentation. .com/fyp/ One place for Projects. This is only for Educational Purpose.co. ? Books LIMITATIONS OF THE STUDY: ? Lack of Time ? Window Dressing ? Lack of experience ? No Primary data Findings After merger of the Global Trust Bank and Oriental Bank of Commerce following changes has been take place: ? Change in management ? New ways of providing services to customers. seminar.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.