Zenith
ZENITH
International Journal of Multidisciplinary Research Vol.2 Issue 5, May 2012, ISSN 2231 5780
STRATEGIC MOVE OF ICICI BANK: A CASE STUDY OF MERGER OF ICICI BANK AND BANK OF RAJASTHAN
DR. ABHINN BAXI BHATNAGAR*; MS. NITU SINHA**
*Associate Professor, Galgotias Business School, Greater Noida. **Research Associate, Galgotias Business School, Greater Noida. ____________________________________________________________________________________
ABSTRACT Changing is the regulation of nature. Any business organization undergoes change on a continuous basis, technically termed as Corporate Restructuring. It can be defined as a strategy to achieve faster growth, desired capital structure and change in the ownership and control of company. The reasons behind change may be external or internal factors. In the present scenario, business organization undertakes changes to increase their cutting edge over the competition and enhance their leadership positions. It is a fundamental fact of finance that growth and capital employed are two basic drivers of the value of an organization. On the other hand neither growth nor improvement in ROCE is possible unless the company is under the control of competent, progressive and visionary management. The present paper is an attempt to understand the strategic move of ICICI bank. The case study will reveal the motives behind and synergies from such M&A activities. An attempt has been made to analyze, “Is corporate restructuring a tool to enhance the shareholders value”. Why ICICI Bank has taken such a strategic move and many more questions will be solved from the case study. ______________________________________________________________________________ INTRODUCTION Mergers and acquisitions in banking sector has become admired trend throughout the country. A large number of public sector, private sector and other banks are engaged in mergers and acquisitions activities in India. One of the prominent motives behind Mergers and
International Journal of Multidisciplinary Research Vol.2 Issue 5, May 2012, ISSN 2231 5780
STRATEGIC MOVE OF ICICI BANK: A CASE STUDY OF MERGER OF ICICI BANK AND BANK OF RAJASTHAN
DR. ABHINN BAXI BHATNAGAR*; MS. NITU SINHA**
*Associate Professor, Galgotias Business School, Greater Noida. **Research Associate, Galgotias Business School, Greater Noida. ____________________________________________________________________________________
ABSTRACT Changing is the regulation of nature. Any business organization undergoes change on a continuous basis, technically termed as Corporate Restructuring. It can be defined as a strategy to achieve faster growth, desired capital structure and change in the ownership and control of company. The reasons behind change may be external or internal factors. In the present scenario, business organization undertakes changes to increase their cutting edge over the competition and enhance their leadership positions. It is a fundamental fact of finance that growth and capital employed are two basic drivers of the value of an organization. On the other hand neither growth nor improvement in ROCE is possible unless the company is under the control of competent, progressive and visionary management. The present paper is an attempt to understand the strategic move of ICICI bank. The case study will reveal the motives behind and synergies from such M&A activities. An attempt has been made to analyze, “Is corporate restructuring a tool to enhance the shareholders value”. Why ICICI Bank has taken such a strategic move and many more questions will be solved from the case study. ______________________________________________________________________________ INTRODUCTION Mergers and acquisitions in banking sector has become admired trend throughout the country. A large number of public sector, private sector and other banks are engaged in mergers and acquisitions activities in India. One of the prominent motives behind Mergers and