Executive summary:

The Project, as the Title Mergers & Acquisition: In Indian Banking Sector suggests, is an attempt to bring forth the importance of the process of Managing M&As and the significance of the vital role played by Mergers in the development of the Indian banking sector. During the last two decades or so, the global industrial landscape had been completely redrawn by the forces of globalization, deregulation, and unprecedented technological developments. And companies have responded to the competitive pressures unleashed by these forces through extensive repositioning programs involving mergers, acquisitions, alliances, divestitures, and demergers. Initially most Indian companies and business groups would seem to have been caught unaware by the momentous and rapid changes carried out in the regulatory environment. However after the tentativeness of the early postreform years, several of them would seem to have come to terms with the new realities of an intensively competitive domain through extensive restructuring at the operational level and to a lesser extent at the strategic levels. As Indian companies stand on the threshold of the next phase of growth it is inevitable that several of them would find themselves required to make more decisive choices in respect of the financial portfolio of businesses in their stable. Many of them should be prepared to acquire or be acquired as companies begin to experience limits to organic growth in an environment of intense competition and as Value Creation takes precedence over Size as the new corporate mantra. This project is equipped with a sound understanding of the value creation strategies involving mergers, acquisitions and other forms of restructuring and the entire process involved in managing an Merger & Acquisition (M & A). In short The project has been focused on the Indian banking sector the changing scenario from mere institutions of lending to the providers of the most customized financial services under one roof. The project has been divided into Four Major parts: Indian Banking sector- An Overview: This part covers the in-depth study of Indian Banking Industry which includes the Public Sector, Private Sector and Foreign Sector banks, their working, the

governance with the help of RBI, the Present & Future of The Banking Concepts. It also Includes the

Report on Narasimham Committee , Its Impact on M & A. It includes the Valuation concepts & Process of Mergers pertaining to the world scenario. Mergers This part covers the Meaning & Definition, concept of Mergers & Acquisitions, need for those, their types, their Synergies, Post Merger Practices, and the Future of it. Basically, it covers the Why, What, When, Which & How of the M & A process. Case Studies This part covers the Live Case Studies of M & A in the Banking Sector. This includes the M & A of HDFC Times Bank, ICICI Bank of Madura, Oriental Bank of Commerce GTB. It mentions the reason, the benefits, the drawbacks & final Outcome / Result of the M & A. Future Perspectives Of Mergers This part covers the future opportunities for M & A in the Indian Banking Sector, some Prospective Mergers, the future Landscape of The Overall Banking Sector.

TABLE OF CONTENTS
Sr. No. TOPICS Page No.

CHAPTER 1
1 The Fertile Banking Sector of India Banks entering the merger Era

1-3

CHAPTER 2 Merger Meaning & Definition Distinction between Mergers and Acquisitions Types of Mergers Synergy of mergers

3-10

3 4 Need for Mergers

CHAPTER 3 Motivation for Mergers and Acquisitions Shareholders viewpoint Managerial viewpoint Promoter viewpoint Government viewpoint CHAPTER 4 Weaknesses of Smaller Banks

11-13

13-14

 Recent Merger 5 CHAPTER 5 Case study 2 ICICI Bank Bank of Madura The Main Idea ICICI Planning big Synergies Merger Shortfalls of Merger

14-25