Mergers and Acquisitions in Indian Banking Sector

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MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTOR

PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE AWARD OF THE MASTER’S DEGREE IN
BUSINESS ADMINISTRATION

TABLE OF CONTENTS

I ABOUT THE PROJECT

1. INTRODUCTION
2. PROBLEM BACKGROUND
3.PROBLEM DEFINITION
4. RESEARCH DESIGN
5. LIMITATIONS

II ABOUT THE TOPIC

1. INDUSTRY PROFILE
2. TYPES OF MERGER
3. MOTIVES BEHIND MERGER
4. ADVANTAGES OF MERGER

III COMPANY ANALYSIS

1. ANALYSIS OF ICICI&BANK OF MADURA
2. ANALYSIS OF HDFC&TIMES BANK
3. ANALYSIS OF OBC>B

IV CONCLUSIONS

V CALCULATOINS PART

VI APPENDIX

VII BIBLIOGRAPHY

DECLARATION

I here by declare that the project report titled “MERGERS AND ACQUISITIONS IN INDIA BANKING SECTOR ” is submitted by me to “XXXXX” is bonafide work undertaken by me and is not submitted to any other university or institution for the award of any degree /certificate .

Name and address of the signature of the student student

Date:

ACKNOWLEDGEMENT

I am very thankful to our Director XXX sir for providing all the facilities to complete my project.

I, gratefully acknowledge the valuable guidance and support of XXXX , my project guide, who had been of immense help to me in choosing the topic and successful completion of the project.

I extend my sincere thanks to all who have either directly or indirectly helped me for the completion of this project.

EXECUTIVE SUMMARY

Merger is a combination of two or more companies into one company. The acquiring company, (also referred to as the amalgamated company or the merged company) acquires the assets and the liabilities of the target company (or amalgamating company). Typically, shareholders of the amalgating company get shares of the amalgamated company in exchange for their shares in the Target Company.

There are two ways which company can grow; one is internal growth and the othe one is external growth. The intenal growth suffers from drawbacks like the problem of raising adequate finances, longer implementation time of the projects, uncertain etc. in order to overcome these problems a company can grow externally by acquiring the already existing business firms. This is the route of mergers and acquisition.

OBJECTIVE

To evaluate whether the mergers and acquisitions in banking sector create any shareholder value or not.

RESEARCH TOOLS

Financial ratios, Economic Value added and market Value Added.

SAMPLE DESIGN

A sample of three mergers has been taken and the financial statements of five years had been analyzed. The five-year period comprises of Pre-merger period and post merger period.

FINDINGS

1. Shareholders of the target company has benefited more than the acquired company. 2. The post merger analysis is showing the increasing trend in MVA&EVA. 3. The market price has increased during merger period of target companies. 4. All the parameters are showing increasing trend after merger period. 5. EPS of the acquired companies has increased more than 100% in post merger period.

CONCLUSION
My final and ultimate conclusion is, yes, merger of all these companies have created value to the shareholders of the target company and acquired company.

Mergers and acquisitions in India

Mergers and acquisitions aim towards Business Restructuring and increasing competitiveness and shareholder value Via increased efficiency. In the market place it is the survival of the fittest.

India has witnessed a storm of mergers in recent years.The Finance...
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