Merger and Acquisition of Indian Banks
PROJECT REPORT
ON
“MERGERS AND ACQUISITIONS OF BANKS”
EXECUTIVE SUMMARY
Mergers and acquisitions are one of the popular topics in business today, since they characterize the new economy: pressure of global competition, development of technology and disappearance of country boundaries. The purpose of this project is to study how mergers and acquisitions affect the share prices of the acquirer bank. We have taken up seven banks as a part of our case study analysis and have made an attempt to study the share price pattern of Transferee Banks before and after merger on a monthly basis by drawing out graphs and using correlation and regression.
TABLE OF CONTENTS
1. Introduction …………………………………………………………………7 2. Research Methodology…………………………………………………….19 3. Case study on Banks a. Bank of Baroda……………………………………………………….22 b. OBC…………………………………………………………………..26 c. IDBI..………………………………………………………………….30 d. Indian Overseas Bank…………………………………………………34 e. ICICI…...……………………………………………………………...37 f. HDFC………...………………………………………………………..41 g. Punjab National Bank…………………………………………………44
4. Conclusions and Recommendations…………………………………………47 5. References…………………………………………………………………...48
LITERATURE REVIEW
Our research mainly identifies the changing pattern of average share prices of the acquirer company and whether the overall effect has been positive or not. The research papers, we have studied for this purpose includes:
1. MERGERS AND ACQUISITIONS: AN EXPERIMENTAL ANALYSIS OF SYNERGIES, EXTERNALITIES AND DYNAMICS BY- RACHEL T. A. CROSON, ARMANDO GOMES, KATHLEEN L. MCGINN AND MARKUS NÖTH The ultimate goal of a takeover is to realize synergies, but how the synergies are divided between the involved companies is an open question that is critical for identifying winners and losers in mergers and acquisitions. Experimental method is used to investigate these questions. This research focuses on the bargaining process among owner-managers in the
ON
“MERGERS AND ACQUISITIONS OF BANKS”
EXECUTIVE SUMMARY
Mergers and acquisitions are one of the popular topics in business today, since they characterize the new economy: pressure of global competition, development of technology and disappearance of country boundaries. The purpose of this project is to study how mergers and acquisitions affect the share prices of the acquirer bank. We have taken up seven banks as a part of our case study analysis and have made an attempt to study the share price pattern of Transferee Banks before and after merger on a monthly basis by drawing out graphs and using correlation and regression.
TABLE OF CONTENTS
1. Introduction …………………………………………………………………7 2. Research Methodology…………………………………………………….19 3. Case study on Banks a. Bank of Baroda……………………………………………………….22 b. OBC…………………………………………………………………..26 c. IDBI..………………………………………………………………….30 d. Indian Overseas Bank…………………………………………………34 e. ICICI…...……………………………………………………………...37 f. HDFC………...………………………………………………………..41 g. Punjab National Bank…………………………………………………44
4. Conclusions and Recommendations…………………………………………47 5. References…………………………………………………………………...48
LITERATURE REVIEW
Our research mainly identifies the changing pattern of average share prices of the acquirer company and whether the overall effect has been positive or not. The research papers, we have studied for this purpose includes:
1. MERGERS AND ACQUISITIONS: AN EXPERIMENTAL ANALYSIS OF SYNERGIES, EXTERNALITIES AND DYNAMICS BY- RACHEL T. A. CROSON, ARMANDO GOMES, KATHLEEN L. MCGINN AND MARKUS NÖTH The ultimate goal of a takeover is to realize synergies, but how the synergies are divided between the involved companies is an open question that is critical for identifying winners and losers in mergers and acquisitions. Experimental method is used to investigate these questions. This research focuses on the bargaining process among owner-managers in the
References: 2. CORPORATE AQCUISITION BY- MERCER MANAGEMENT CONSULTING (BUSINESS WEEK, 1997)