A Study on the Merger of Public Sector Banks in Recent Times

Abstract

The banking industry is consolidating at an accelerating pace, and merger and acquisition is one of the extensively used means for restructuring the business organizations. Narasimham committee recommended consolidation through a process of merging strong banks and that weaker banks should be shut downbut in the current merger decision, weak banks are being merged with the strong banks. In this study we analyze the mergers and acquisitions of public sector banks in recent times. The present study attempts to evaluate the purpose, impact, benefits and challenges in merger of PSBs. The study also highlights the role and opportunities available to a CMA.