Case Study by Icici

International Journal of Research in Management

ISSN 2249-5908
Issue2, Vol. 2 (March -2012)

Merger and Acquisition in Banking Industry: A Case Study of
ICICI Bank Ltd.
Dr. K.A. Goyal* and Vijay Joshi**
*Former Head of Management Department, BIT-WCAS, Muscat, Oman. Faculty, Shri
Govind Guru Government College, Banswara. [e-mail], +91
7597293666
**Doctoral Research Scholar, Department of Business Administration, UCCMS, MLSU,
Udaipur. [e-mail], [phone]
___________________________________________________________________________

Abstract:
To keep the head high in globalized economy one has to follow t he path of growth, which contains various challenges and issues ; one has to overpower these challenges and issues to become a success story. We consider a case of ICICI Bank Ltd., the largest private sector bank in India, which has acquired nine financial firms to make the steps of the ladder of success. Therefore, the aim of this article is to study the growt h of ICICI Bank Ltd. through mergers, acquisitions, and amalgamation. This article is divided into four parts. The first part includes introduction and conceptual framework of mergers and acquisition. The second part discusses the historical background of ICICI Bank Ltd. and followed by review of literature.
The third part discusses all the mergers, acquisitions, and amalgamations in detail. Finally, the article concludes that a firm must devise a strategy in three phases i.e. Pre -merger phase, acquisition phase and post-merger phase. The article will be helpful for policy makers, strategy makers, HR people, bankers, researchers, and scholars.
Key Words: Mergers, Acquisitions, Amalgamation, Banks’ Strategy, and Human
Resources.
___________________________________________________________________________
**
Corresponding Author

1.1 Introduction:
The pressures on the employees of banks around the world have been manifold across

References: Appelbaum, S. H., Gandell, J., Yortis, H., Proper, S. and Jobin, F. (2000). Anatomy of a merger: behaviour of organizational factors and processes throughout the pre - duringpost-stages (part 1) Bryson, J. (2003). Managing HRM risk in a merger. Employee Relations, 25(1), 14 -30. Cartwright, S. and Cooper, C. L. (1990). The Impact of Mergers and Acquisitions on People at Work: Existing Research and Issues Cartwright, S. and Schoenberg, R. (2006). Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities Chen, C., & Lin, M. (2011). An assessment of post -M&A integration influences on new product development performance: An empirical analysis from China, Taiwan, and HK Ellis, K. M., Reus, T. H., & Lamont, B. T. (2009). The effects of procedural and informational justice in the integration of related acquisitions George, B.P. & Hegde, P. G. (2004). Employee Attitude towards Customers & Customer Care Challenges in Banks Ivancevich, J. M., Schweiger, D. M. and Power F. R. (1987). Strategies for managing human resources during mergers and acquisitions Maire, S., & Collerette, P. (2011). International post-merger integration: Lessons from an integration project in the private banking sector Murthy, G. K. (2007). Some Cases of Bank Mergers in India: A Study. In Bos e, J. (Ed.), Bank Mergers: The Indian Scenario Paul, J. (2003). Bank of Madura Merger with ICICI Bank: An Analysis. IIMB Management Review, 15(3). Salama, A., Holland, W. and Vinten, G. (2003). Challenges and opportunities in mergers and acquisitions: Three International case studies – Deutsche Bank-Bankers Trust; British Saraswathi, K. V. (2007). Crucial HR Management Is sues in Bank Consolidation: Some Cases. In Bose, J Schraeder, M., and Self, D.R. (2003). Enhancing the Success of Mergers and Acquisitions: Schuler, R clash during the post merger integration process. Human Resource Management, 50(5), 565570. Zollo, M., & Singh, H. (2004). Deliberate learning in corporate acquisitions: post -acquisition strategies and integration capability in U.S 25(13), 1233-1256. The Banking Regulation Act, 1949 Accounting Standard (AS) 14 issued by the Council of the Institute of Chartered Accountants of