Recent Merger and Acquisition in Indian Banking Sector: A Study of Merger of Andhra Bank and Corporation Bank with Union Bank of India

Abstract

Financial and economic growths are the key indicator for every nation for financial independence. History is a witness of India‟s prosperous inheritance. There is no denying that India also faced a dark age after that. After passing through many ups and down, India has on the track of development. Banking sector plays a significant role for the growth in economy for every nation. Today, the way banks operate has changed drastically. RBI and Government of India are more cautious for the development of banks. That is the reason why the banks are to be pushed toward the strategy of merger and acquisition, so that Indian banking sector will also become competent and symbol of triumphantly in global market. Merger and acquisition is not new for Indian banking sector, as more or less, this strategy has been applied from many years ago, but after 2014, this strategy has been accelerated in rigorous way. In 2019, Financial Minister, Mrs. Nirmala Sitharaman, announced that 10 public sector banks merged and converted into 4 public sector banks. The researcher has put in the genuine efforts to study the progress of one of the merger from the commendable step up in Indian economy. For conducting the study, the merger of Andhra Bank and Corporation Bank with Union Bank of India has been selected. Secondary data has been collected for the study and financial parameters have been examined for the measurement of the progress of selected bank.