MERGER IN INDIAN BANKING SECTOR

MERGER OF DENA & VIJAYA BANK WITH BANK OF

BARODA

PRESENTED BY : SWAPNIL PARASHAR

 T TINTRODUCTION OF BANKING SECTOR

BANKINGTINTINDIA,TINTTHETMODERNTSENSE,ToriginatedTinTtheTlastTdecadeT
ofTtheT18thTcentury.TAmongTtheTfirstTbanksTwereTtheTbankTofTHindustan,Tw
hichTwasTestablishedTinT1770TandTliquidatedTinT1829-
32;TandTtheTgeneralTbankTofTIndia,TestablishedTinT1786TbutTfailedTinT1791.T

TheTlargestTbank,TandTtheToldestTstillTinTexistence,TisTtheTstateTbankTofTIndi
aT(SBI)TitToriginatedTandTstartedTworkingTasTtheTbankTofTCalcuttaTinTmid-
juneT1806.TinT1809,TitTwasTrenamedTasTtheTbankTofTbangal.TThisTwasToneT
ofTtheTthreeTbankTfoundedTbyTaTpresidencyTgovernment,TtheTotherTtwoTwe
reTtheTbankTofTbombayTinT1840TandTbankTofTmadrasTinT1843.TTheTthreeTb
anksTwereTmergedTinT1921TtoTfromTtheTimperialTbankTofTindiaTwhichTupon
Tindia’sTindependence,TbecomeTtheTstateTbankTofTIndiaTinT1955.TForTmanyT
yearsTtheTpresidencyTbanksThadTactedTasTquasi-
centralTbanks,TasTdidTtheirTsuccessors,TuntilTtheTReserveTbankTofTIndiaTwasT
establishedTinT1935,TunderTtheTReserveTbankTofTIndiaTact,T1934.T
InT1960,TtheTstateTbankTofTIndiaTwasTgivenTcontrolTofTeightTstate-
TassociatedTbanksTunderTtheTstateTbankTofTIndiaT(subsidiaryTbanks)Tact,T195
9.TTheseTareTnowTcalledTitsTassociateTbanks.TInT1959TtheTIndianTgovernmen
tTnationalisedT14TmajorTprivateTbanks,ToneTofTtheTbigTbankTwasTbanksTofTI
ndia.TInT1980,T6TmoreTprivateTbanksTwereTnationalised.TTheseTnationalisedT
banksTareTtheTmajorityTofTlendersTinTtheTindianTeconomy.TTheyTdominateTt
heTbankingTsectorTbecauseTofTtheirTlargeTsideTandTwidespreadTnetworks.T

TheTIndianTbankingTsectorTisTbroadlyTclassifiedTintoTscheduledTandTnon-
scheduledTbanks.TTheTscheduledTbanksTareTthoseTincludedTunderTtheT2ndTS
cheduleTofTtheTReserveTBankTofTIndiaTAct,T1934.TTheTscheduledTbanksTareTf
urtherTclassifiedTinto:TnationalisedTbanks;TStateTBankTofTIndiaTandTitsTassoci
ates;TRegionalTRuralTBanksT(RRBs);TforeignTbanks;TandTotherTIndianTprivateTs
ectorTbanks.TTheTtermTcommercialTbanksTrefersTtoTbothTscheduledTandTnon
-
scheduledTcommercialTbanksTregulatedTunderTtheTBankingTRegulationTAct,T1
949.
 RESERVETBANKTOFTINDIA

RESERVETBANKSTOFTINDIATACT,T1934TisTtheTlegislativeTactTunderTwhichTthe
TreserveTbankTofTindiaTwasTformed.TThisTactTalongTwithTtheTcompniesTact,T
whichTwasTamendedTinT1936,TwereTmeantTtoTprovideTaTframeworkTforTtheT
supervisionTofTbankingTfirmsTinTIndia.T

Summary
TheTactTcontainsTtheTdefinitionTofTtheTso-
calleTscheduledTbanks,TasTtheyTareTmentionedTinTtheT2ndTscheduleTofTtheTac
t.TTheseTareTbanksTwhichTwereTtoThaveTpaidTupTcapitalTandTreserveTaboveT
5Tlakh.T
ThereTareTvariousTsectionTinTtheTRBITActTbutTtheTmostTcontroversialTandTco
nfusingTsectionTisTSectionT7.TAlthoughTthisTsectionThasTneverTbeenTusedTbyT
theTcentralTgovt,TitTputsTaTrestrictionTonTtheTautonomyTofTtheTRBI.TSectionT
7TstatesTthatTcentralTgovernmentTcanTlegislateTtheTfunctioningTofTtheTRBITt
hroughTtheTRBITboard,TandTtheTRBITisTnotTanTautonomousTbody.
SectionT17TofTtheTActTdefinesTtheTmannerTinTwhichTtheTRBITcanTconductT
business.TTheTRBITcanTacceptTdepositsTfromTtheTcentralTandTstateTgovern
mentsTwithoutTinterest.TItTcanTpurchaseTandTdiscountTbillsTofTexchangeTfr
omTcommercialTbanks.TItTcanTpurchaseTforeignTexchangeTfromTbanksTandT
sellTitTtoTthem.TItTcanTprovideTloansTtoTbanksTandTstateTfinancialTcorporat
ions.TItTcanTprovideTadvancesTtoTtheT

centralTgovernmentTandTstateTgovernments.TItTcanTbuyTorTsellTgovernment
Tsecurities.TItTcanTdealTinTderivative,TrepoTandTreverseTrepo.
 INTRODUCTION OF ORGANIZATION

BANKTOFTBARODA

BankTofTBarodaTisTanTIndianTstate-
ownedTInternationalTbankingTandTfinancialTservicesTcompanyTheadqua
rteredTinTVadodaraT(earlierTknownTasTBaroda)TinTGujarat,TIndia.TItTisT
theTsecondTlargestTbankTinTIndia,TnextTtoTStateTBankTOfTIndia.TItsThe
adquartersTisTinTVadodara,TitThasTaTcorporateTofficeTinTtheTMumbai.

TheTbankTwasTfoundedTbyTtheTMaharajaTofTBaroda,TMaharajaTSayajiraoTGae
kwadTIIITonT20TJulyT1908.TTheTbank,TalongTwithT13TotherTmajorTcommercial
TbanksTofTIndia,TwasTnationalisedTonT19TJulyT1969,TbyTtheTGovernmentTofTI
ndiaTandThasTbeenTdesignatedTasTaTprofit-
makingTpublicTsectorTundertakingT(PSU).
KeyTMilestones

TheTbank,TalongTwithT13TotherTmajorTcommercialTbanksTofTIndia,TwasTnatio
nalisedTonT19TJulyT1969,TbyTtheTGovernmentTofTIndiaTandThasTbeenTdesign
atedTasTaTprofit-makingTpublicTsectorTundertaking(PSU)T.

TInT1961,TBoBTmergedTinTNewTCitizenTBankTofTIndia.TBoBTalsoTopenedTaTbr
anchTinTFiji.TTheTnextTyearTitTopenedTaTbranchTinTMauritius.TBankTofTBarod
aTInT1963,TBoBTacquiredTSuratTBankingTCorporationTinTSurat,TGujarat.TInT19
65,TBoBTopenedTaTbranchTinTGuyana.TInT1969,TtheTIndianTgovernmentTnatio
nalisedT14TtopTbanksTincludingTBoB.
 DENATBANK

DenaTBankTwasTfoundedTo-
nT26thTMay,T1938TbyTtheTfamilyTofTDevkaranTNanjeeTunderTtheTnameTDev
karanTNanjeeTBankingTCompanyTLtd

ItTbecameTaTPublicTLtd.TCompanyTinTDecemberT1939TandTlaterTtheTnameTw
asTchangedTtoTDenaTBankTLtd.

InTJulyT1969TDenaTBankTLtd.TalongTwithT13TotherTmajorTbanksTwasTnationa
lizedTandTisTnowTaTPublicTSectorTBankTconstitutedTunderTtheTBankingTComp
aniesT(AcquisitionT&TTransferTofTUndertakings)TAct,T1970.TUnderTtheTprovisi
onsTofTtheTBankingTRegulationsTActT1949,TinTadditionTtoTtheTbusinessTofTba
nking,TtheTBankTcanTundertakeTotherTbusinessTasTspecifiedTinTSectionT6TofTt
heTBankingTRegulationsTAct,T1949.
Milestones

 OneTamongTsixTPublicTSectorTBanksTselectedTbyTtheTWorldTBankTforTs
anctioningTaTloanTofTRs.72.3TcroresTforTaugmentationTofTTier-
IITCapitalTunderTFinancialTSectorTDevelopmentalTprojectTinTtheTyearT19
95.
 OneTamongTtheTfewTBanksTtoTreceiveTtheTWorldTBankTloanTforTtechn
ologicalTupgradationTandTtraining.
 LaunchedTaTBondTIssueTofTRs.92.13TcroresTinTNovemberT1996.
 MaidenTPublicTIssueTofTRs.180TCroresTinTNovemberT1996.
 IntroducedTTeleTbankingTfacilityTofTselectedTmetropolitanTcenters.

DenaTBankThasTbeenTtheTfirstTBankTtoTintroduce:

 MinorTSavingsTScheme.
 CreditTcardTinTruralTIndiaTknownTasT"DENATKRISHITSAKHTPATRA"T(DKS
P).
 Drive-inTATMTcounterTofTJuhu,TMumbai.
 SmartTcardTatTselectedTbranchesTinTMumbai.
 CustomerTratingTsystemTforTratingTtheTBankTServices.
VIJAYATBANK
VijayaTBank,TwasTfoundedTonT23rdTOctoberT1931TbyTlateTShriTA.B.ShettyTan
dTotherTenterprisingTfarmersTinTMangaluru,TKarnataka.TTheTobjectiveTofTthe
TfoundersTwasTessentiallyTtoTpromoteTbankingThabit,TthriftTandTentrepreneur
shipTamongTtheTfarmingTcommunityTofTDakshinaTKannadaTdistrictTinTKarnata
kaTState.TTheTbankTbecameTaTscheduledTbankTinT1958.
VijayaTBankTsteadilyTgrewTintoTaTlargeTAllTIndiaTbank,TwithTnineTsmallerTba
nksTmergingTwithTitTduringTtheT1963-
68.TTheTcreditTforTthisTmergerTasTwellTasTgrowthTgoesTtoTlateTShriTMulkiTS
underTRamTShetty,TtheTthenTtheTChiefTExecutiveTofTtheTbank.TTheTbankTwa
sTnationalisedTonT15thTAprilT1980.TTheTbankThasTbuiltTaTnetworkTofT2031Tb
ranches,T13TExtensionTCountersTandT2001TATMsTasTonT31.03.2017,TthatTspa
nTallTStatesTandTUnionTTerritoriesTinTtheTcountry.

EachTbranchTprovidesTeffectiveTandTefficientTservicesTandTsignificantlyTcontri
butesTtoTtheTgrowthTofTtheTindividual,TandTtheTnation...
INTRODUCTION OF RESEARCH TOPIC

WhatTIsTaTMerger?

ATmergerTisTanTagreementTthatTunitesTtwoTexistingTcompaniesTintoToneTne
wTcompany.TThereTareTseveralTtypesTofTmergersTandTalsoTseveralTreasonsT
whyTcompaniesTcompleteTmergers.TMergersTandTacquisitionsTareTcommonlyT
doneTtoTexpandTaTcompany’sTreach,TexpandTintoTnewTsegments,TorTgainTm
arketTshare.TAllTofTtheseTareTdoneTtoTincreaseTshareholderTvalueT.

HowTaTMergerTWorks

ATmergerTisTtheTvoluntaryTfusionTofTtwoTcompaniesTonTbroadlyTequalTterms
TintoToneTnewTlegalTentity.TTheTfirmsTthatTagreeTtoTmergeTareTroughlyTequ
alTinTtermsTofTsize,Tcustomers,TscaleTofToperations,Tetc.TForTthisTreason,Tth
eTtermT"mergerTofTequals"TisTsometimesTused.TAcquisitions,TunlikeTmergers,
TorTgenerallyTnotTvoluntaryTandTinvolveToneTcompanyTactivelyTpurchasingTa
nother.

MergersTareTmostTcommonlyTdoneTtoTgainTmarketTshare,TreduceTcostsTofTo
perations,TexpandTtoTnewTterritories,TuniteTcommonTproducts,TgrowTrevenue
s,TandTincreaseTprofits—
allTofTwhichTshouldTbenefitTtheTfirms'Tshareholders.TAfterTaTmerger,TsharesT
ofTtheTnewTcompanyTareTdistributedTtoTexistingTshareholdersTofTbothTorigin
alTbusinesses.

DueTtoTaTlargeTnumberTofTmergers,TaTmutualTfundTwasTcreated,TgivingTinve
storsTaTchanceTtoTprofitTfromTmergerTdeals.TTheTfundTcapturesTtheTspreadT
orTamountTleftTbetweenTtheTofferTpriceTandTtradingTprice.TTheTMergerTFun
dTfromTWestchesterTCapitalTFundsThasTbeenTaroundTsinceT1989.TTheTfundTi
nvestsTinTcompaniesTthatThaveTpubliclyTannouncedTaTmergerTorTtakeover.TT
oTinvestTinTtheTfund,TaTminimumTamountTofT$2,000TisTrequired,TwithTaT1.9
1%TexpenseTratio.TAsTofTMarchT2,T2019,TtheTfundThasTreturnedT6.1%Tannua
llyTsinceTinceptionTinT1989.

TYPESTOFTMERGERS
HorizontalTMergers:-
THorizontalTmergersTareTthoseTmergersTwhereTtheTcompaniesTmanufacturing
TsimilarTkindsTofTcommoditiesTorTrunningTsimilarTtypeTofTbusinessesTmergeT
withTeachTother.TExampleT:TBankTofTMaduraTwithTICICITBank.T

VerticalTMergers:-
TATmergerTbetweenTtwoTcompaniesTproducingTdifferentTgoodsTorTservices.TE
xampleT:TPixar-DisneyTMerger

TConglomerateTMergers:-
TATmergerTbetweenTfirmsTthatTareTinvolvedTinTtotallyTunrelatedTbusinessTac
tivities.T
TwoTtypesTofTconglomerateTmergers:T 1.TPureTconglomerateTmergersTinvolv
eTfirmsTwithTnothingTinTcommon.T
 2. MixedTconglomerateTmergersTinvo
lveTfirmsTthatTareTlookingTforTproductTextensionsTorTmarketTextensions.T
ExampleT:TWaltTDisneyTCompanyTandTtheTAmericanTBroad
castingTCompanyTConcentricTMergers:-
TBasedTonTspecificTmanagementTfunctionsTwhereTasTtheTconglomerateTmerg
ersTareTbasedTonTgeneralTmanagementTfunctions.TExample:TCitigroupT(princi
pallyTaTbank)TbuyingTSalomonTSmithTBarneyT(anTinvestmentTbanker/stockTbr
okerageToperation.

SOMETOFTTHETPASTTMERGEDTBANKS
GrindTlayTBankTmergedTStandardTchartedTBankT-
T2000T•TTimesTBankTwithTHDFCTBankT-
T2000T•TBankTofTMaduraTwithTICICITBankT-
T2001T•TDunghillTBankTLtd.TWithTPunjabTNationalTBankT-
T2003T•TGlobalTTrustTBankTmergedTwithTOrientalTBankTofTCommerceT–
T2004T•TParerTcentralTBankTmergedTwithTBankTofTIndiaT–T1989-
90T•TUnitedTindustrialTBankTmergedTwithTAllahabadTBankT–T1989-
90T•TLakshmiTCommercialTBankTmergedTwithTCanadaTBankT–T1984-85

REASONSTOFTMERGER
ReasonsProductTimprovementTFutureTgoalsTMutualTbenefitsTMaximizingTProfi
tsTExpansionTofTBusinessTEconomyTofTscaleTIncreaseTMarketTshareTCostTmax
imizationTDiversificationTofTriskTGoodwill.T

REVIEWTOFTLITRATURE
ThisTisTsecondTmergerTofTstate-
runTbanksTinTtheTrecentTyearsTinTtheTbankingTsectorTafterTstateTbankThadT
mergedTfiveTofTitsTassociateTbanks-
TstateTbankTofTpatiala,TstateTbankTofTbikanerTandTJaipur,TstateTbankTofTmys
orenTstateTbankTofTtravancoreTandTstateTbankTofTHyderabadTandTalsoTbhart
iyaTmahilaTeffectiveTAprilT2017.

“WeTareTextremelyTpleasedTthatTbankTofTBarodaT,TvijayaTbankTandTDenaTba
nkTareTcomingTtogetherTcreatingTsecondTlargestTbankTinTtermsTofTnetworkT
andTcustomerTbase.T

WeTwouldTworkTforTtheTsuccessTofTtheTamalgamationTbyTeffectiveTexecutio
nTofTallTtheTactivitiesTtoTbuildTaTstrongerTorganizationTandTcollectivelyTdeliv
erTmoreTtoTtheTstakeTholdersTthanTthatTofTsumTofTindividualTentities.”TBOB
TchiefTPSTjayakumarTsaidTinTaTrelease.

Deposit,lendingTratesTtoTbeTdecidedTbyTmergedTentity
“TheTfixedTdepositTrateTapplicableTwillTbeTtheToneTofferedTbyTtheTacquiring
TbankTonTtheTdateTofTtheTofficialTmerger,”TsaysTviratTDiwanji,Tpresident,Tret
ailTliabilitiesTandTbranchTbanking,TkotakTmahindraTbank.THowever,TexistingTF
DTwillTcontinueTtoTearnTtheTinterestTpromisedTearlier,TtillTmaturity.TSimilarly,
TloanTagreementsTtoo,TwillTcontinueTasTperTtheToriginalTagreements.TForTho
meTloans,TtheTcontractedTrateTwillTbeTapplied.
State-
TownedTbankTofTBaroda(BOB)TisTlikelyTtoTcompleteTtheTprocessTofTmergerTo
fTDenaTbankT&TvijayaTbankTwithTitTinTtwoTyears,TsaidTaTSeniorTofficialTofTB
OB.T

TTheTmergerTofTDenaTbankT&TvijayaTbankTwithTBOBTbecameTeffectiveTfrom
TAprilT1.T
InformationTtechnologyTplatformTintegrationTaloneTwillTtakeTaboutT12Tmonth
sTandTotherTprocessesTandTsystemTmayTtakeTanotherTyearTorTso,TtheTofficia
lTsaid.T

AsTfarTasTcapitalTisTconcerned,TtheTofficialTsaid,TtheTgovernmentThasTinfused
TRS.5,042TcroreTinTtheTbankTtakingTcareTofTadditionalTexpensesTandTmaintai
ningTminimumTregulatoryTcapitalTrequirement.T
 ADVANTAGE’ST&TDISADVANTAGE’STOFTMERGER
ADVANTAGE’S

 Scale

ATbankTmergerThelpsTyourTinstitutionTscaleTupTquicklyTandTgainTaTlargeTnu
mberTofTnewTcustomersTinstantly.TNotTonlyTdoesTanTacquisitionTgiveTyourTb
ankTmoreTcapitalTtoTworkTwithTwhenTitTcomesTtoTlendingTandTinvestments,
TbutTitTalsoTprovidesTaTbroaderTgeographicTfootprintTinTwhichTtoToperate.TT
hatTway,TyouTachieveTyourTgrowthTgoalsTquicker.

 Efficiency

AcquisitionsTalsoTscaleTyourTbankTmoreTefficiently,TnotTjustTinTtermsTofTyour
TefficiencyTratio,TbutTalsoTinTtermsTofTyourTbankingToperations.TEveryTbankT
hasTanTinfrastructureTinTplaceTforTcompliance,TriskTmanagement,Taccounting,
ToperationsTandTITT–
TandTnowTthatTtwoTbanksThaveTbecomeTone,Tyou’reTableTtoTMORETEFFICIE
NTLYTCONSOLIDATETANDTADMINISTERTTHOSETOPERATIONALTINFRASTRUCTUR
ES.TFinancially,TaTlargerTbankThasTaTlowerTaggregatedTriskTprofileTsinceTaTlar
gerTnumberTofTsimilar-
risk,TcomplimentaryTloansTdecreaseToverallTinstitutionalTrisk.

 AfterTmergerTofTpublicTsectorTbanks,TthereTwillTbeTexcessTworkforce,Twh
ichTwillTleadTtoTVRSTandTfurtherThiringTwillTbeTstoppedTorTrestricted,Twh
ichTwillTaffectTtheTemployment.

 MergerTofTbanksTwillTresultTintoTclosureTofTmanyTbranches,Tadministrativ
eToffices,TATMs,TprocessingTcentersTetc.TTheTexcessTworkforceTatTsomeT
centersTwillTbeTtransferredTtoTfarToffTplaces

DISADVANTAGE’S
 PositionsTatTtopTwillTgetTreducedTasTthereTwillTbeTlesserTnumberTofTCM
Ds/TEDsTandTGMs.TThatTmeansTthereTwillTbeTslowTandTdelayedTpromoti
onsTinTtheTbank.

 DifferentTBanksThaveTdifferentTculture,Tsystems,Tprocesses,TproceduresTa
ndTmergerTwillTleadTtoTclashTofTorganizationalTcultures.TEmployeesTofTlar
gerTbankTdoesTnotTgiveTequalTtreatmentTtoTemployeesTofTsmallerTbankTi
nTtheTnewTandTmergedTbank.TThisTmayThappenTinTtransfers,TpostingsTan
dTpromotionsTorTinTdayTtoTdayTworking.TThisTmayTleadTtoTdiscontentTa
mongTstaffTandTunhealthyTworkingTenvironmentTwhichTwillTaffectTtheTeff
iciencyTofTworkers.TSmallTbanksTwillTwillTloseTtheirTlocalTcharacteristics.

 MergerTofTaTweakTbankTwithTaTstrongTbankTmayTalwaysTnotTresultTinto
TaTbetterTbankTasTtheTweaknessesTofToneTbankTmayTgetTtransferredTan
dTtheTmergedTentityTmayTbecomeTweak.TAsThappenedTinTamalgamationT
ofTGlobalTTrustTBankTwithTOBC.TOverallTprofitabilityTmayTnotTincrease,Ta
sTenvisaged,TbecauseTlossesTofTtheTweakTbankTmayTeatTupTtheTprofitsTo
fTstrongTbank.

WHYTBOBTMERGETWITHTDENATBANKT&TVIJAYATBANK

TheTmergerTofTBOBTwithTVijayaTBankTandTDenaTBankTisTquiteTsingularTforTdiffe
rentTreasons.TFirstly,TforTtheTfirstTtime,TweTwillTbeTwitnessingTaTmergerTofTthree
TPSBsT(whichTisTdifferentTfromTtheToneTinvolvingTSBITandTitsTassociates)Twhich
TcanTbeTaTprecursorTtoTotherTsuchTmoves.TSecondly,TtheTthreeTbanksTinvolvedT
consistTofTtwoTstrongT(oneTbigTandToneTsmall)TandToneTPCATbank.TThirdly,Tthe
TmotivationTforTsuchTaTmove,TthoughTideologicalTinTscope,TisTanTattemptTtoTres
uscitateTaTrelativelyTweakerTbankTwithTtwoThealthierTones.TFourthly,TwhileTtwoTb
anksTcriss-
crossToneTanotherTinTgeographicalTspace,TtheTthirdTbecomesTstrategicallyTsignific
antTbeingTbasedTinTtheTsouth.TFifthly,TtheTmergerTcomesTatTaTtimeTwhenTallTP
SBsTareTwalkingTtheTthinTedgeTnegativeTprofits.TThus,TthisTmoveThintsTatTaTmo
dicumTofTdesperation.TAnd,TaboveTall,TthereTisTnoTtalkTofTsynergies,TwhichTisTn
ormallyTtheTtermTusedTwhenTmergersTareTspokenTof.

TIntuitively,TwhenTsuchTadditionsTareTmade,TtheTstrongerTentityTbecomesTweaker,
TwhileTtheTweakerTonesTbecomeTstronger.
WhenTjudgingTtheTstrengthTandTresilienceTofTbanks,TtypicallyTtheTCAMELSTappro
achTisTused.TThisTcanTalsoTbeTdoneTinTthisTcontext.TCapitalTcannotTreallyTincre
aseTasTitTwillTbeTtheTsumTofTtheTindividualTbanks’Tcapital,TbutTthisTwillTbeThigh
erTwhenTmergedTtogetherTandTwillTgiveTaTfeelingTofTaTstrongerTbank.TCanTtheT
combinedTentityTlendTmore?TToTtheTextentTthatTtheTPCATbankTcannotTdoTsoTno
w,TtheTcombinedTentityTcanTexpandTonTtheTloanTbook.TBut,TforTtheTbankingTsys
temTasTaTwhole,TthingsTcannotTchangeTasTtheTcapitalTremainsTunchanged.
 OBJECTIVETOFTTHISTRESERCH

 ToTknowTaboutTbiggestTdealTinTbankingTsector

 ToTstudyTaboutTtheTprofitTofTbanksTbyTtheTmergerT

 ToTstudyTaboutTtheTreasonTofTthisTmerger.

 ToTstudyTaboutTeconomicTimpactTbyTtheTmerger.
 CONCLUSION

WeTconcludeTthatTGovernmentTisTaimingTtoTreduceTtheTNumberTofTstate
-ownedTlendersTandTimprovingTtheirTfinancialThealth.T

InTthisTbackTgroundTproposedTmergerTwillTbenefitTtoTnotTtoTbankTbutTal
soTtoTeconomyTasTwhole.

SimilarlyTtheTbankTboardTbureauThasTbeenTtaskedTwithToverseeingTaTrest
ructuringTamongTotherTpublicTsectorTbanksTtoTspeedTofTtheTlongTdelayedTpr
ocess.T

WeTalsoTconcludeTthatTtoTgiveTtheTlifeTlineTtoTDenaTbankTforTthisTisTthe
TmergerThaveTdone.TTheTDenaTbankTisTregularlyTgoTinTlossTandTitsTNPATals
oTincreasedTdayTbyTday,TsoTaboveTtheseTreasonTmergerThaveTdoneTwithTpo
werTfullTbank(BOB)T