A

Presentation
on
“Mergers & Acquisitions
in
Banking Sector of
India”
Presented to : Presented By :
Dr. Kalpesh Prajapati Sonal Vaghela
Vishal Thakar
Harsh Patel
S.V. Institute of Management, Kadi Asha Jigar
 Recent mergers of banks:
Year of Merged Name of the Banks Acquired Name of the Banks Merged into

2019 August Indian Bank Indian Bank and Allahabad Bank

Union Bank, Andhra Bank and
2019 August Union Bank
Corporate Bank
2019 August Canara Bank Canara Bank and Syndicate bank

Punjab National Bank, Oriental bank of

2019 August Punjab National Bank
commerce and United bank of India

2019 April Bank of Baroda Vijaya bank and Dena Bank

2017 April State Bank of India Bhartiya Mahila Bank (BMB)

2017 April State Bank of India All the 5 associates of SBI
2014 Nov Kotak Mahindra Bank ING Vyasa Bank
2010 May ICICI Bank Bank of Rajasthan
Successful approach to mergers and acquisition
integration:
Name of the Banks Merged
Years of Merged Name of the Banks Acquired
into

1985 Canara Bank Lakshmi Commercial Bank

1993 Punjab National Bank New Bank of India

1994 Bank of India Bank of Karad

1999 Union Bank of India Sikkim Bank
2000 HDFC Bank Times Bank
2001 ICICI Bank Bank of Madura

2008 HDFC Bank Centurion Bank of Punjab

Merits of Bank Mergers and Acquisitions:

 Through mergers, it will help the banks to scale up its business and
gain a large number of customers quickly.
 It also helps to fill the business gap, to empower the business to fill
product or technology gaps and being acquired by the big business
firm it will help to upgrade its technology platform efficiently.
 It will bring better efficiency ratio to the business and banking
operations and minimize the risk factor ratio by merging into one.
 It will also help in upgradation of technology, increase in profit and
raise the standard of living.
 Demerits of Bank Mergers and Acquisitions:

 Different perspective of thinking, different risk culture so it

creates a negative impact on the profitability of the
organization.
 The perspective of merging on papers not consider their
people or culture into account this is the reason why many
bank mergers ultimately fail.
Important points related to sections and law:

 Amalgamation of two banking companies is under the

provisions of Section 44 of the Banking Regulation
Act,1949.
 Amalgamation of a banking company with a non-banking
company is governed by sections 391 to 394 of the
Companies Act, 1956
 Banks may take 2-3 years to standardize core technology,
products and customer applications after the government
proposed to merge some prominent public sector lenders
last week, analysts said.
Account number, customer IDs likely to change

 To get a new account number and customer ID. Make

sure your email address/physical address and mobile
number is updated with your bank so that you receive
official intimations on change of account numbers.
Moreover, all your accounts will be tagged to a single
customer ID. Let us say you have an account with
Oriental Bank of Commerce and one at United Bank of
India; the two accounts will be allotted a single
customer ID.
Amalgamation:
Continued:
Continued:
Continued:
Rank Bank
1 State Bank of India
2 Punjab National Bank
3 Bank of Baroda
4 Canara Bank
5 Union Bank of India
6 Bank of India
7 Indian Bank
8 Central Bank of India
9 Indian Overseas Bank
10 UCO bank
11 Bank of Maharashtra
12 Punjab and Sind Bank
Banking order (Largest to Business in Lakhs of
Market Share
Smallest) crore Rupees
State Bank of India 52.1 22.5
PNB+OBC+United Bank 17.9 7.7
HDFC Bank 17.5 7.6
Bank of Baroda 16.1 7
Canara + Syndicate Bank 15.2 6.6
Union+Andhta+Corporati
14.6 6.3
on Bank
ICICI Bank 12.7 5.5
Axis Bank 10.6 4.6
Bank of India 9.0 3.9
Indian + Allahabad Bank 8.1 3.5
M&A impact on economy:

 Reduce bankruptcy
 Growth of economy
 Increase market share
 Easily availability of money
 Procedure of banks merger and acquisition:
 The procedure for merger either voluntary or otherwise is printed within the several state
statutes/the banking rules act.
 While choosing the merger, the approved officers of the exploit bank and therefore the
merging bank sit on and it discuss concerning the procedural modalities and financial terms.
 Approval from board and Shareholder of several banks.
 A registered appraiser is appointed to evaluate valuations of each the banks.
 once the valuation is accepted by the several banks, they send the proposal beside all
relevant documents to RBI and alternative restrictive bodies such SEBI for his or her
approval.
 At last when getting approvals from all the establishments, approved officers of each the
banks then they sit along to debate and settle share allocation proportion by the exploit bank
to the shareholders of the merging bank.
 After finishing higher than procedures then it'll signed by the banks