Essay bank mergers

Combination of two companies involves a transfer of ownership, either through a stock exchange or a cash payment between the two companies. Thus, practically both companies surrender their stock and issue new stock, share their information related to debts, resources, technology etc. as a new company

Nearly every middle-market bank in the industry is looking to either acquire another bank or be acquired, and it’s likely that yours is no exception. Many banks see an acquisition or merger as a chance to expand their reach or scale up operations quicker.

Mergers in Indian banking have been initiated through the recommendations of Narasimhan Committee II. The issue has been in the news recently as the Union Cabinet approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB).

DANGERS OF BANK MERGERS AND ACQUISITIONS. Poor Culture Fit. Plenty of prospective bank mergers and acquisitions only look at the two banks on paper – without taking their people or culture into account. Failure to assess cultural fit (not just financial fit) is one reason why many bank mergers ultimately fail.