Mergers in Banking Sector in India: An Analysis of Performance of HDFC Bank

Abstract

Mergers in India in general have experienced an increased number in various sectors especially after the New Economic Policy in the year 1991 which has opened the doors for the global markets.  Banking Sector in India has witnessed many Mergers during the years for various reasons such as Restructuring of Weak Banks; Economies of Scale; Expansion of Market; Business Consolidation etc. Looking into the history of Mergers in Banking Sector in India, initially they have taken place as a measure to protect the interests of the customers of the weak banks but subsequently a few Mergers also have taken place voluntarily in the Post Liberalisation Period between various banks for several reasons. In this context, the study of performance of the banks that have merged voluntarily assumes importance.