A

PROJECT REPORT ON
“BANKING AND FINANCE”

SUBMITTED BY

THAKKAR RIYA

(4181)

UNDER THE GUIDANCE OF

ASST PROF. VIDHYASAGAR BANSODE

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILMENT FOR SECOND YEAR OF

BACHELOR OF BUSINESS ADMINISTRATION

(2021-22)

THROUGH

BRACT’S

VISHWAKARMA COLLEGE OF ARTS, COMMERCE & SCIENCE

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 ACKNOWLEDGEMENT

“Presentation Inspiration And Motivation Have Always Played A Key Role In The
Success Of Any Project.”

I, The Undernamed Student Of BRACT’S Vishwakarma College Of Arts, Commerce And Science
Hereby Acknowledge My Gratefulness Towards All The Personages Associated In The Completion
Of This Project.

On The Very Onset Of This Practical Work, I Avail The Pleasure To Convey My Profound
Gratitude To Savitribai Phule Pune University For Granting Me The Opportunity To Carry Out This
Analytical Study Under Partial Fulfilment Of The Course-Bachelor Of Business Administration.

I Would Also Like To Express My Deep Sense Of Appreciation Towards Vishwakarma College Of
Arts, Commerce And Science; And Its Principal Dr.Arun Patil For Providing Me The Golden
Fortuity To Do This Project.

I Am Ineffably Indebted To My Project Guide Asst Prof.Vidhyasagar Bansode For His

Conscientious Guidance And Encouragement In Accomplishment Of This Project.

Last But Not The Least, A Big Thank-You To All Those Who Helped Me Towards The Fulfilment
Of This Project.

*Any Omission In This Brief Acknowledgement Does Not Mean Lack Of Gratitude*

STUDENT NAME: THAKKAR RIYA NILESH

ROLL NO: 4181
CLASS & SEM: SY.BBA (SEM-III)
SEAT NO:

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 DECLARATION

I, The Undernamed Hereby Declare That The Project Work Entitled “Banking And Finance”
(Merger And Acquisition Of Any Bank In Last Five Years, Working Of RBI, Comparative Analysis
Of One Private And One Nationalised Bank) Has Been Submitted To Savitribai Phule Pune
University And Is The Record Of An Original Work Done By Me Under The Partial Fulfilment Of
Bachelor of Business Administration Course For The Academic Year 2021-22).

*Findings And Conclusions Are Based On The Material Collected By Me.*

*This Project Has Not Been Submitted Or Published To Any Other College Or
Institutes Before*

STUDENT NAME- THAKKAR RIYA NILESH

CLASS & SEM- SY.BBA (SEM-III)
ROLL NO- 4181
SEAT NO

PLACE- PUNE
DATE- 12/02/2022

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 CERTIFICATE

This Is To Certify That, Miss/Master “THAKKAR RIYA NILESH”

Second Year Has Completed Project Report On
“BANKING AND FINANCE”
Under Practical Work BBA(Sem III)-Department of Commerce.

As Prescribed By The Savitribai Phule Pune University In The Academic

Year 2021-2022

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 TABLE OF CONTENTS

SR. NO TITTLE PAGE

Tittle Page 01

Acknowledgement 02

Declaration 03

Certificate 04

Table Of Contents 05-06

TOPIC-1 MERGER AND ACQUISITION OF BANK OF
BARODA, VIJAYA BANK AND DENA BANK
07

: Abstract 08

: Background 09-10

: Introduction Of Study 11-12

: Research Methodology 13

: Significance And Scope Of Study

: Data Analysis And Interpretation Of Study

: Limitations Of Study

: Conclusion

: Bibliography 20
TOPIC-2 PPT ON STRUCTURE AND WORKING OF
21
RESERVE BANK OF INDIA

5
 35
TOPIC 3 COMPARATIVE STUDY OF FINANCIAL
PERFORMANCE OF ONE PRIVATE AND 36
ONE NATIONALISED BANK

50

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 TOPIC-1
{ MERGER AND ACQUISITION OF BANK OF BARODA-DENA BANK-VIJAYA BANK }

ABSTRACT
This Project Aims To Understand “The Merger Of Bank Of Baroda, Dena Bank And Vijaya Bank.
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 The Liberalisation, Privatisation And Globalisation Phenomena Which Started In Early 1990’s;
Gave A Restructured Mount Of Rebellion To The “Banking Industry” By Indulging Various Reforms In
The Economic Scene Of Our Developing Nation-India. This Process Of Abridgement Changes Has
Constantly Redrawn Various Industrial Maps And Brought Competition Not Only From India But Also
From Overseas Through Various Forms Of Corporate Restructuring.

These Restructuring Strategies Can Broadly Be Classified Into Three Paradigm’s As Follows:

 PORTFOLIO RESTRUCTURING:
: An Active Management Strategy For A Portfolio, In Which The Investor Or Fund Manager
Utilizes Fundamental, Technical And Macroeconomic Analysis In Determining When And How To
Change The Securities Ie. Sale Of Assets No Longer Needed Or The Purchase Of Upgraded Ones,
Thereby Rehabilitating The Investment Strategy Is Termed As “Portfolio Restructuring”.

 FINANCIAL RESTRUCTURING:
: A Special Initiative Undertaken To Reorganize Or Reshuffle The Financial Structure Of A
Business Enterprise Which Primarily Involves Reconstitution Of Share Capital And Debt Equity
Structure; To Favourably Change The Contractual Relationships With Lenders, Shareholders And
Other Stakeholders Is Termed As “Financial Restructuring.”

 ORGANISATIONAL RESTRUCTURING:
: A Corporate Action That Involves Reorganizing A Company’s Business Model Or Workforce
Hierarchical Structure, To Have A Definitive Order And A Clear Understanding Of Departmental
Authorities Is Termed As “Organisational Restructuring.”

FORMS OF RESTRUCTURING

Expansion Selloffs Corporate Control Changes in Ownership

l
Structure
: Mergers And : Spinoffs : Premium Buy-Backs : Exchange Offers
Acquisitions : Splitofs : Standstill Agreements : Share Repurchases
: Tender Offers : Splitups : Anti-Takeover Amendments : Going Private
: Joint Ventures : Divestitures : Proxy Contests : Leveraged Buyouts

BACKGROUND

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The Seeds Of Systematic Banking Practice In India Were Sown Down In 18th Century, As The
Central Bank Of India And Bank Of Hindustan Were Established In 1786 And 1790
Respectively. Primarily, The Oldest Bank Existence In India Is The State Bank Of India- Which
Originated As Bank Of Calcutta In June 1806; However, Was Immediately Known To Be Called As
The Bank Of Bengal. This Was One Of The Three Presidency Banks, The Other Two Being The
Bank Of Bombay And The Bank Of Madras, All Three Of Which Were Established Under Charters
From The British East India Company. For Many Years These Presidency Banks Acted As Quasi-
Central Banks, So As Did Their Successors. Subsequently, The Bank Of India, Baroda Bank,
Corporate Bank And Indian National Bank Were Also Established Between 1906-1911 Under
Swadeshi Movement. The Central Bank of India Established In 1911 By Sir Sorabji Pochkhanawala
Became The First Commercial Indian Bank Completely Owned And Managed By Indians.
Moreover, The History Of Banking Industry In India Got Divided Into Two Periods:

PRE-
LIBERALIZATION POST-
LIBERALIZATION

 PRE-LIBERALIZATION:
 The Government Of India Initiated Measures To Play An Active Role In The Economic Aspect
Of The Nation, Thus The Industrial Policy Resolution Adopted By The Government In 1948
Envisaged A Mixed Economy.
 The Banking Sector Also Witnessed Considerable Benefits; As The Government Of India Took
The Following Major Steps Post-Independence:
- Nationalization Of Reserve Bank In 1949
- Enactment of Banking Regulation Act In 1949
- Reserve Bank Of India Scheduled Banks' Regulations, 1951
- Nationalization Of Imperial Bank Of India In 1955, With Extensive Banking Facilities On A
Large Scale Especially In Rural And Semi-Urban Areas
- Nationalization of SBI subsidiaries in 1959
 Furthermore, The Government Of India Issued An Ordinance And Nationalized The 14 Largest
Commercial Banks With Effect From Midnight Of July 19, 1969.

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 Within Two Weeks Of The Issue Of The Ordinance, The Parliament Passed The Banking
Companies (Acquisition And Transfer Of Undertaking) Bill, And Received Its Presidential
Approval On August 6, 1969.
 Lasty, Second Dose Of Nationalization Of 6 More Commercial Banks Took Place In 1980.

 POST-LIBERALIZATION:
 The Government Of India Headed By Narasimha Rao Committee, Decided To Usher In Several
Reforms That Are Collectively Termed As Liberalization In The Indian Media With Manmohan
Singh Whom He Appointed Finance Minister.
 In The Early 1990’s, The Then Narsimha Rao Government Embarked On A Policy Of
Liberalisation, Licensing A Small Number Of Private Banks. These Institutions Thus Came To
Be Known As New Generation Tech-Savvy Banks And Included Global Trust Which Later
Amalgamated With Oriental Bank of Commerce, Axis Bank(Earlier As UTI Bank),ICICI Bank
and HDFC Bank.
 This Move Along With The Rapid Growth Of Indian Economy, Revitalized The Banking
Sector In India, Which Has Seen Rapid Growth With Strong Contribution From All The
Three Sectors Of Banks Namely-Government Banks, Private Banks And Foreign Banks.
 Hence, This Change Enhanced The Development Of Indian Banking Industry On An Overall
Basis.

INTRODUCTION
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The Phrase “Mergers And Acquisitions” (Commonly Abbreviated As M&A) Refers To The Aspect Of
Corporate Strategy, Corporate Finance And Management Dealing With The Buying, Selling And
Combining Of Different Companies That Can Aid, Finance Or Help A Growing Company To Grow
Rapidly Without Having To Create Another Business Entity.

 MERGERS:

 Merger Also Defined As ‘Amalgamation’ Is A Combination Of Two Or More Companies Into

A Single Company, Where One Survives And Others Losses It’s Corporate Existence.
 It Can Often Resemble A Takeover But Result In A New Company Name (Often Combining
The Names Of Original Companies) Wherein All Assets, Liabilities And The Stock Of One
Company Stand Are Transferred To Transferee Company In Consideration Of Payment
For:
- Equity Shares In The Transferee Company
- Debentures In The Transferee Company
- Cash
- A Mix Of The Above Modes Etc.
 Such Actions Usually Occur When Merging Companies Have Mutual Consent Towards Each
Other And Are Concerned With Improving Operations Of The Company, Managing The Affairs
 Of The Company Effectively For All Round Gains And Growth Of The Company Which Will
Provide Them Better Deals In Raising Their Status, Perks And Fringe Benefits.

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 AQUISITIONS:

TOPIC-2
{ PPT ON STRUCTURE AND WORKING OF RESERVE BANK OF INDIA}

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BIBLOGRAPHY

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 TOPIC-3
{ COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF ONE PRIVATE AND

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ONE NATIONALISED BANK }

BIBLOGRAPHY

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