CHAPTER-1

INTRODUCTION

WHAT ARE MERGERS AND ACQUISITIONS ?

Mergers and acquisitions (M&A) are defined as consolidation of companies.

Differentiating the two terms, Mergers is the combination of two companies to
form one, while Acquisitions is one company taken over by the other. M&A is
one of the major aspects of corporate finance world. The reasoning behind
M&A generally given is that two separate companies together create more
value compared to being on an individual stand. With the objective of wealth
maximization, companies keep evaluating different opportunities through the
route of merger or acquisition.

Mergers and acquisitions (M&A) are the area of corporate finances,

management and strategy dealing with purchasing and/or joining with other
companies. In a merger, two organizations join forces to become a new
business, usually with a new name. Because the companies involved are
typically of similar size and stature, the term "merger of equals" is sometimes
used.
A business may grow over time as the utility of its products and services is
recognized. It may also grow through an inorganic process, symbolized by an
instantaneous expansion in work force, customers, infrastructure resources and
thereby an overall increase in the revenues and profits of the entity. Mergers and
acquisitions are manifestations of an inorganic growth process. While mergers
can be defined to mean unification of two players into a single entity,
acquisitions are situations where one player buys out the other to combine the
bought entity with itself. It may be in form of a purchase, where one business
buys another or a management buy-out, where the management buys the
business from its owners. Further, de-mergers, i.e., division of a single entity
into two or more entities also require being recognized and treated on par with
mergers and acquisitions regime as recommended below, and accordingly
references below to mergers and acquisitions also is intended to cover de-
mergers (with the law & Rules as framed duly catering to the same).

The process of mergers and acquisitions in India is court driven, long drawn and
hence problematic. The process may be initiated through common agreements
between the two parties, but that is not sufficient to provide a legal cover to it.
The sanction of the High Court is required for bringing it into effect. The
Companies Act, 1956 consolidates provisions relating to mergers and
acquisitions and other related issues of compromises, arrangements and
reconstructions, however other provisions of the Companies Act get attracted at
different times and in each case of merger and acquisition and the procedure
remains far from simple. The Central Government has a role to play in this
process and it acts through an Official Liquidator (OL) or the Regional Director
of the Ministry of Company Affairs. The entire process has to be to the
satisfaction of the Court. This sometimes results in delays.
Uses of Mergers & Acquisitions :

 Mergers and acquisitions are used as instruments of momentous growth

and are increasingly getting accepted by Indian businesses as critical tool
of business strategy. 
 They are widely used in a wide array of fields such as information
technology, telecommunications, and business process outsourcing as
well as in traditional business to gain strength, expand the customer base,
cut competition or enter into a new market or product segment.
 Mergers and acquisitions may be undertaken to access the market through
an established brand, to get a market share, to eliminate competition, to
reduce tax liabilities or to acquire competence or to set off accumulated
losses of one entity against the profits of other entity.

Mergers & Acquisitions can take place :

o By Purchasing Assets
o By Purchasing Common Shares
o By Exchange Of Shares for Assets
o By Exchanging Shares For Shares

Types of Mergers and Acquisitions :

Merger or amalgamation may take two forms - merger through absorption or

merger through consolidation.
Mergers can also be classified into three types from an economic perspective
depending on the business combinations, whether in the same industry or not,
into -

 HORIZONTAL

A horizontal merger or acquisition is where the two joining companies operate

in the same market, selling similar products. For example, if KFC and
McDonalds were subject to a merger or acquisition, it would be known as
horizontal. Both firms operate in the fast-food market, selling similar goods.

 VERTICAL

A vertical merger or acquisition is where the two companies operate at different

stages of the supply chain. So, this might involve one company purchasing its
supplier, or the supplying company purchasing the firm it sells to.

 CONGLOMERATE

A conglomerate merger or acquisition is where two companies from completely

different industries join together. The Amazon acquisition of Whole Foods in
2017 for $13.4 billion is one such example. Whilst Amazon is known for its e-
commerce presence, Whole Foods is an American food retailer.

Pros of Mergers & Acquisitions :

 Access to Talent
 Cost Benefits
 Economies of Scale
  Financial Power
 Reduce Risk
 Reduce Competition
 Tax Advantages

Cons of Mergers & Acquisitions :

 Conflict of Culture
 Diseconomies of Scale
 Employee Distress
 Financial Burden
 Higher Prices
 Lost Jobs
 Sunk Costs

MERGERS AND ACQUISITIONS IN BANKING SECTOR

Mergers and acquisitions in banking sector have become familiar in the

majority of all the countries in the world. A large number of international and
domestic banks all over the world are engaged in merger and acquisition
activities. One of the principal objectives behind the mergers and acquisitions in
the banking sector is to reap the benefits of economies of scale.
With the help of mergers and acquisitions in the banking sector, the
banks can achieve significant growth in their operations and minimize their
expenses to a considerable extent. Another important advantage behind this
kind of merger is that in this process, competition is reduced because merger
eliminates competitors from the banking industry. Through mergers and
acquisitions in the banking sector, the banks look for strategic benefits in the
banking sector. They also try to enhance their customer base.

LIST OF MERGER AND ACQUISITION IN BANKING SECTOR IN

INDIA

Name of the acquiring Bank targeted Year in which the merger

bank took place
Kotak Mahindra Bank ING Vyasa Bank 2014

ICICI Bank Bank of Rajasthan Ltd. 2010

HDFC Bank Centurion Bank of Punjab 2008

Indian Overseas Bank Bharat Overseas Bank 2007

Federal Bank Ganesh Bank of Kurandwad

Industrial Development United Western Bank

Bank of India
2006
Centurion Bank of Lord Krishna Bank
Punjab
ICICI Bank Sangli Bank
Bank of Punjab Centurion Bank 2005
Industrial Development IDBI Bank Ltd. 2004
Bank of India
Bank of Baroda South Gujarat Local Area
Bank
 Oriental Bank of Global Trust Bank
Commerce
Punjab National Bank Nedungadi Bank Ltd. 2003
ICICI Bank ICICI Ltd.
2002
Bank of Baroda Banaras State Bank Ltd.
ICICI Bank Bank of Madura 2001
HDFC Bank Ltd. Times Bank Ltd. 2000
Bank of Baroda Bareilly Co-op Ltd.
1999
Union Bank of India Sikkim Bank Ltd.
Oriental Bank of Bari Doab Bank Ltd. 1997
Commerce
Oriental Bank of Punjab Co-op Ltd. 1996
Commerce
State Bank of India Kashinath State Bank 1995
Bank of India Bank of Karad Ltd. 1994
Punjab National Bank New Bank of India 1993

Mergers and acquisitions in banking sector are forms of horizontal merger

because the merging entities are involved in the same kind of business or
commercial activities. Sometimes, non-banking financial institutions are also
merged with other banks if they provide similar type of services.

In the context of mergers and acquisitions in the banking sector, it can be

reckoned that size does matter and growth in size can be achieved through
mergers and acquisitions quite easily. Growth achieved by taking assistance
of the mergers and acquisitions in the banking sector may be described as
inorganic growth. Both government banks and private sector banks are adopting
policies for mergers and acquisitions.
BANK OF BARODA – ANCHOR BANK

Bank of Baroda (BOB) is an Indian nationalized

banking and financial services company
headquartered in Vadodara. It is the third largest
nationalised bank in India, with 132 million
customers, a total business of US$218 billion, and a
global presence of 100 overseas offices. Based on
2019 data, it is ranked 1145 on Forbes Global 2000
list.

The The Maharaja of Baroda, Sayajirao Gaekwad III,

founded the bank on 20 July 1908 in the Princely State
of Baroda, in Gujarat.[6] The government of India
nationalized the bank, along with 13 other major
commercial banks of India on 19 July 1969 and
designated as a profit-making public sector
undertaking (PSU).
DENA BANK – AMALGAMATED BANK

Dena Bank was a government-owned that in

2019 merged with Bank of Baroda . It was
headquartered in Mumbai and had 1,874
branches. The bank was founded in 1938 and
was nationalized in 1969 by the government of
India.

Dena Bank was founded on 26 May 1938 by the

family of Devkaran Nanjee, under the name
Devkaran Nanjee Banking Company. It adopted
its new name, Dena (Devkaran Nanjee) Bank,
when it was incorporated as a public company
in December 1939.

In July 1969, the government of India

nationalized Dena Bank, along with thirteen
other major banks. Dena Bank thereby became
a Public Sector bank constituted under the
Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970.
VIJAYA BANK – AMALGAMATED BANK

Vijaya Bank was a PSU bank which was

merged with Bank of Baroda in April 2020
with its head office in Bangalore, Karnataka,
India. It was one of the nationalised banks in
India. The bank offered a wide range of
financial products and services to customers
through its various delivery channels. The bank
had a network of 2031 branches (as of March
2017) throughout the country and over 4000
customer touch points including 2001 ATMs.

Vijaya Bank was established by a group of

farmers led by A. B. Shetty on 23 October
1931in Mangalore in Dakshina Kannada district
of Princely State of Mysore (present-day
Karnataka). Since it was established on day of
Vijayadashami, it was named "Vijaya Bank".
 CHAPTER 2

2.1 REVIEW OF LITERATURE

RESEARCH REVIEWS OF SOME SELECTED RESEARCH PAPERS

TITLE OF THE PAPER: MERGER AND ACQUISITIONS IN THE INDIAN BANKING

SECTOR

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED
2015 P.VASAVI 1) Evaluate the banks Study of Hypothesis
performance in various T Test
terms of operating banks
and net
profitability.
2) To find out the
impact of merger
on company’s debt
equity ratio.

FINDINGS OF THE STUDY: The work on this paper is focusing on mergers and
acquisitions of various banks, evaluating the banks performance in terms of operating and
net profitability .The method in this paper includes financial indicators like Net profit
margin, Gross profit margin, ROI, ratio of debt to equity, share price and earning per share.
In this financial ratios from three years before merger and three years after a merger
are used to compare the performance of banks, the merger year was regarded as a base
year. The study is done on a secondary data.
TITLE OF THE PAPER: A STUDY ON CONSUMER AWARENESS IN BANKING
SECTOR AFTER THE MERGER WITH SPECIAL REFERENCE TO STATE BANK OF
INDIA AND STATE BANK OF INDORE

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED
2017 Manish The purpose of the study is 200 SPSS Software
to examine the differences
Phalke and Questions T Test
before and after the merger
Dr.Avinas of State Bank of Indore from target
into SBI.
h Desai respondents
FINDINGS OF THE STUDY: This paper focus on the pre-merger and post-merger
activity in the Indian banking sector from 2006 to 2010 was examined.Both the liquidity
situation and the profitability levels of State Bank of Indore and SBI have not seen any
significant changes as a result of their financial performance in relation to buying private
limited banks. However, in a shorter amount of time, banks' ability to generate income
from their investments in fixed assets has decreased. In addition, against the acquisition of
private limited banks by public and private sector banks in India, net earnings over a longer
time period of five years tend to rise.
TITLE OF THE PAPER: MERGERS AND ACQUISITION IN THE INDIAN BANKING
SECTOR: A STUDY ON BANK OF BARODA

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2019 Dr. Anil 1) To know the Study On Data Analysis

Verma and present Bank of Content Analysis
Mr. performance of the Baroda
Surendra bank of board.
Kumar 2) To know Financial
Parameters after
Merged Entity in
bank of board

FINDINGS OF THE STUDY: After merging with Dena Bank and Vijaya Bank, Bank of
Baroda's total business grew to ₹14, 82,325 cr from ₹10, 29,810 cr. In a similar vein,
following the merger, Gross Advances, Deposits (In Cr), branches, Employees, RoA,
Capital Ratio, Net NPA, and CASA Ratio all grew. This three-way merger will result in the
new company having deposits and advances totaling ₹8.75 trillion and ₹6.25 trillion,
respectively. In addition, the merger broadens the reach of Bank of Baroda (BOB) in
India's western, southern, and northeastern regions such as Andhra Pradesh, Kerala, Gujrat,
Odisha, Maharashtra, Karnataka, and Tamil Nadu. According to experts, the new Bank of
Baroda will have a larger client base, a bigger market reach, improved operational
effectiveness, and the capacity to provide customers with a wider range of goods and
services. In order to generate greater profits, the Bank of Baroda, Dena Bank, and Vijaya
Bank would need to come up with creative strategies to boost income. The improvement of
accounting standards, disclosure of practices, and exposure of accounting standards would
all increase market transparency..
TITILE OF THE PAPER: MERGER AND ACQUISITION IN INDIAN BANKING
SECTOR: A CASE STUDY OF BANK OF BARODA

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2019 Dr. Chetan 1) To study on Study On Data Analysis

Kashyap reasons of bank Bank of Case Study
mergers and Baroda
acquisition in
Indian banking
sector.
2) To study the
performance of the
Bank of Baroda in
the pre and post
stages of mergers
and Acquisition.

FINDINGS OF THE STUDY: The banking sector is one of the ones that is growing the
quickest in emerging economies like India. One area that has developed quickly in India
since deregulation is banking. The success of M&A in the banking industry has shown that
merging with a larger bank can help weaker firms survive. Research demonstrates that
small and local banks are more affected by the effects of the global economy, that they
require assistance, and that this is one of the causes of their merger. Following this three-
way merger, Bank of Baroda has risen to the position of third-largest bank, servicing the
entire country and boosting the Indian economy. The market size and client base of the
Bank of Baroda expanded by 52.15 percent, from 8.61 to 13.10 crores, at the end of the
first year of the post-merger era. Branches, regional and zonal offices, and ATMs are now
available in greater numbers. In order to improve operational effectiveness and decrease
redundancy as a result of the merger, Bank of Baroda had to either close or rationalize
branches. Due to the merger, liabilities and assets have increased by 46.39%. Deposits and
borrowings respectively grow by 46.22% and 39.04%. Loans & Advances and Investment
respectively grow by 48.03 percent and 45.91 percent. Operating expenses are up 60.15
percent, while operating income is up 52.45 percent. Following that, Operating Profit rises
by 46%, and Net Profit rises by Rs. 112.70 crore, or 26%. However, both the Gross NPA
and Net NPA rose throughout the post-merger period. Reducing NPA is a difficult task for
Bank of Baroda.
TITLE OF THE PAPER: PRE MERGER AND POST MERGER ANALYSIS OF BANK
OF BARODA

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2020 Khubalkar 1) To study Study On Case Study

Rupesh the Bank of Content Analysis
and implication Baroda
Karmore s of Merger
Rajvilas on the Bank
of Baroda’s
Operational
Condition.
2) To study
the
implication
s of Merger
on the Bank
of Baroda’s
Financial
Condition.
FINDINGS OF THE STUDY: The three-way merger has made Bank of Baroda the third-
largest bank, serving the entire country and boosting the Indian economy. The market size
and client base of the Bank of Baroda expanded by 52.15 percent, from 8.61 to 13.10
crores, at the end of the first year of the post-merger era. Branches, regional and zonal
offices, and ATMs are now available in greater numbers. In order to improve operational
effectiveness and decrease redundancy as a result of the merger, Bank of Baroda had to
either close or rationalize branches. Due to the merger, liabilities and assets have increased
by 46.39%. Deposits and borrowings respectively grow by 46.22% and 39.04%. Loans &
Advances and Investment respectively grow by 48.03 percent and 45.91 percent. Operating
expenses are up 60.15 percent, while operating income is up 52.45 percent. Following that,
Operating Profit rises by 46%, and Net Profit rises by ₹ 112.70 crore, or 26%. However,
both the Gross NPA and Net NPA rose throughout the post-merger period. Reducing NPA
is a difficult task for Bank of Baroda.Financial analysis is a way of communicating merger
signals. Overall, mergers would aid in improved capital management. Along with the
merger, these bank’s governance and management should undergo necessary adjustments.
Due to the merger, the service area has finally been expanded. The merger has had a good
effect on Bank of Baroda.
TITLE OF THE PAPER: A STUDY ON MERGERS AND ACQUISITIONS IN INDIAN
SERVICES INDUSTRY-WITH SPECIAL REFRENCES TO BANKING COMPANIES.

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2020 ADAMA Effect of mergers and Study on Hypothesis

FATTY acquisitions on the SBI Bank, Analytical Modeling
performance of banks in Kotak
India Mahindra
Bank,
ICICI
Bank

FINDINGS OF THE STUDY: It is seen that the ratio has decreased after averaging the
pre and post-merger periods ROA.When the post-merger period is compared to pre-
merger period, the CAR on average has likewise decreased. Following the merger, the
ROE has decreased and the NIM has exhibited little change. After the merger, LAR grew.
Bank mergers and acquisitions seek to increase efficiency, strengthen competitive
advantage and accomplish enhancing synergy and shareholders value. The analysis
indicates that in comparison to the pre-merger and post-merger banking companies didn’t
perform well. This is corroborated by the fact that the ROA was barely affected by mergers
and acquisitions. Which as a result of the statistical significance it enjoys over the other
ratios, is the overall standard measure of Financial performance.
TITLE OF THE PAPER: MERGERS & ACQUISITIONS IN INDIAN BANKING
SECTOR DURING PRE AND POST GLOBAL FINANCIAL CRISIS: AN EMPIRICAL
ANALYSIS

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2020 Mr. To analyze the pre-merger Study on Hypothesis

Ghanshyam versus post-merger PNB,
Chand performance of selected BOB,
Yadav, banks OBC,
Dr. Manish ICICI,
Kumar and HDFC,
Prof. KMB
D.K.Tiwari
FINDINGS OF THE STUDY: The main conclusion of the study is that if there were to
be an open area bank, the mean of the Capital Adequacy Ratio, Total Expenditure to Total
Income Ratio, Net Profit Margin, and Interest Expended to Interest Earned Proportion
would increase. Additionally, a diminishing pattern of mean is found for the Debt Equity
Ratio, NPA to Net Advances Ratio, Assets Turnover Ratio, and Return on Equity. If the
private sector bank mean of the Capital Adequacy Ratio, (NPA) to Net mean of the Capital
Adequacy Ratio, (NPA) to Net Advances Ratio, Total Expenditure to Total Income Ratio,
Assets Turnover Ratio, Net Profit Margin, Return on Assets should change, In the analysis
of pre-merger execution, the asset turnover ratio, net profit margin return on equity, and
interest paid to interest earned ratio are increased, but the mean of merely the debt equity
ratio is decreased. Testing of speculation assumes that there is no significant difference
between the presentation of pre and post-merger of selected banks, with the exception of
net profit margin, where determined estimation of t is more significant than arranged worth
and invalid theory is therefore dismissed. In every other situation, however, classified
worth is more significant than determined worth, which is why all theories are accepted,
with the exception of all net overall revenue. Therefore, it is assumed that everything
except net revenue is enhanced, such as the execution of post-merger in correlation with
pre-merger.
TITLE OF THE PAPER: RECENT MERGERS IN BANKING SECTOR – AN INDIAN
SCENARIO

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED
2021 Dr. To measure Post-Merger Study of Case Study
performance of banks and
Mubarak PNB, Observation
its impact on Indian
And economy Canara Content Analysis
Asha bank,
Barikara Union
Bank,
Indian
Bank

FINDINGS OF THE STUDY: To know the impact of performance of banks after merger
to an Indian economy.The majority of works on mergers and acquisitions have focused on
new patterns, rules, approaches and their detailing, but profitability and money related
investigation of the mergers have not been given due essentials. The post-merger financial
analysis of Oriental bank of commerce, United Bank of India with Punjab National Bank
and its business shows that its total post-merger business was ₹17, 94,526 lakhs crores.
Financial analysis of syndicate bank with Canara bank and its business. The total post-
merger business of these bank was ₹15, 20,295 lakhs crores. Financial analysis of Andhra
bank, corporation bank with union bank of India and its business. Its total post-merger
business was ₹14, 59,434 lakhs crores. Financial analysis of Allahabad bank merging with
Indian bank and its business. The total post-merger business of these banks was ₹8, 07,859
lakhs crores .Weak banks have survived after the merger this lead to enhanced branch
network geographically, large customer base (rural reach), increased market share,
attainment of infrastructure.
TITLE OF THE PAPER: ANALYTICAL STUDY ON THE MERGER OF BANK OF
BARODA, VIJAYA BANK AND DENA BANK, ON THE BACK DROP OF THEIR NPAS

YEAR AUTHOR FACTORS/VARIABLES SAMPLE TOOLS/TECHNIQUE

STUDIED SIZE ADOPTED

2021 Mr. Sai 1) Identifying factors Study On Observation

Kishore V, that lead to merger. Bank of Content Analysis
Dr. Hema 2) Study on financial Baroda , Case study
Divya and indicators of three Vijaya
Mr. K.V.L. banks. Bank,
Madhav 3) To study the Dena
movement of Bank
NPAs and bank’s
profitability by
using selected
ratios.

FINDINGS OF THE STUDY: Mergers and Acquisitions are generally exercised to revive
weak entities from collapsing by merging them with stronger entities to improve the
performance or to amalgamate strong entities resulting in a much stronger entity with a larger
ambit of business. The merger of Bank of Baroda, Erstwhile Vijaya Bank and Erstwhile
Dena Bank is to be understood as a merger intended to revive weak entities from collapsing
and thereby improving the performance. The three banks' combined pattern of diminishing
profitability and rising non-performing assets (NPAs) are the two key causes for concern.
These two things are connected since a rise in NPAs will have a negative effect on the bank's
profitability. The rise in operating costs is the other factor that affects profitability. It shows
Bank of Baroda and Vijaya Bank's NPAs are gradually increasing. By taking immediate
corrective action, this may be managed. However, the exponential rise in NPAs in the Dena
Bank case is quite concerning. Due to the subpar quality of Dena Bank's advances, the RBI
prohibited Dena Bank from approving new loans under Prompt Corrective Action (PCA) on
May 7, 2018. For Dena Bank, this is a crisis of survival. Through the implementation of
stronger instruments to limit NPA growth and further reduce the NPA statistics, the merger
of the three banks, which becomes the second-largest Public Sector Bank of India, is
projected to endure such catastrophe.
 CHAPTER-3

RESEARCH METHODOLOGY

Objectives:

1) To determine how much people are aware about their banks’ Merger or

Acquisition with other Bank/(s).

2) To understand the shift in customer behaviour and perception between

Pre-Merger and Post-Merger situations.

3) To analyze the impact of customers’ demographic characteristics like

gender, age, educational qualification, occupation and income on their

awareness towards mergers and acquisitions.

TYPES OF RESEARCH

There are two types of research – Primary and Secondary.

Primary Research: Primary research is a type of research design in which the

researcher is directly involved in the data collection process. It allows the

researcher to gather first-hand information which can be considered to be more

valid and authentic in a research environment.

I have used primary research by the way of directly collecting Data

(responses) from general public through Questionnaires.

Secondary Research: Secondary research or desk research is

a research method that involves using already existing data. Existing data is

summarized and collated to increase the overall effectiveness of research.

I have used secondary research method as well by collecting data from

various existing data resources which includes, research papers, websites,

publications, newspapers and journals.

RESEARCH DESIGN

The methodology used in the study, as well as in the process of gathering,

synthesizing, and interpreting data, determine the quality of the work. The

validity of systematic work is determined by proper sampling, data collecting,

data interpretation, and conclusion formulation.

The properties of a data set are summarized and organized using descriptive

statistics. A data set is a collection of responses or observations from a sample

or population as a whole.

The study is made up of general public including all age-groups from Delhi

NCR region. This research study is solely based on EXPLORATORY

(study of various research papers) and DESCRIPTIVE (primary data

collected by the way of questionnaire) research designs, in which the

researcher has no control over the variables; we can only report what has

occurred and what is now occurring.

SAMPLING DESIGN

A sample design is a method for selecting a sample from a population. It refers

to the method or procedure used by the researcher to pick things for the sample.

● Sampling Techniques

There are two types of sampling methods :

Probability sampling involves random selection, allowing us to make

strong statistical inferences about the whole group.

Non probability sampling involves non-random selection based on

convenience or other criteria, allowing us to easily collect data.

Here I’ll will be using Non-Probability sampling technique as I have to take

non-random responses and more specific to the topic. Because the people

who,

- Do not have a bank account

 - And the ones who holds an Account in the banks that I’m not

considering for my research

will be useless to my research as it will include their unreal experience or

attitude towards the topic. So, I will be taking a convenience sample.

A convenience sample is made up of people who are most easily accessible to

the researcher. This is a quick and low-cost technique to collect preliminary

data, but there's no way to know if the sample is typical of the population, thus

the results aren't generalizable.

The Convenient Sampling method is used to choose the sample, and an attempt

was made to include people from all age-groups apart from the ones mentioned

above.

● Sampling Population

All Customers having any sort of qualification and of any age-group are

eligible to participate in the survey.

● Sampling Size

The number of people we should include in our sample is determined by

a number of criteria, including the population's size and variability, as

 well as our study strategy. Depending on what we want to achieve with

statistical analysis, there are numerous sample size calculators and

algorithms.

For the simplicity of study, my sample size is 50 customers.

● Sampling Area

The data sample covers responses from people of Delhi/NCR.

METHODS OF DATA COLLECTION

Primary and secondary data sources were used to gather information.

Primary data: The study's data was gathered from Delhi/NCR city people. It

includes people from all age-groups. A questionnaire is used to acquire main

data and information from pupils. A total of 50 people were included in the

study.

Secondary data: Data for the study was gathered from a variety of websites,

publications, newspapers and journals. For a better presentation of the study,

many research papers and articles on the subject were analysed. The

research is based on self-evaluation.

TOOL OF ANALYSIS

“MULTIPLE REGRESSION”

By fitting a line to the observed data, regression models are used to describe

relationships between variables. We can use regression to predict how a

dependent variable will change as the independent variable(s) change.

The link between two or more independent variables and one dependent

variable is estimated using multiple linear regression.

Here we have:

Independent Variable: ASSESSMENT OF MERGER/ACQUISITION

Because we can’t change what the customer has already evaluated.

Dependent Variable: EXPERIENCE OF MERGER/ACQUISITION

This variable can be conveniently manipulated in order to gain the desired

results.
LIMITATIONS OF STUDY

1. It exclusively takes into account the input of only those people who are

holding an account in the banks specified in questionnaire.

2. Data is gathered through a questionnaire leads to lack of deep

understanding of the issues.

3. The study's sample size is 50 respondents, which is not particularly large.

4. Individual experiences and knowledge differ, which can lead to data

inaccuracy.

5. Conclusions and recommendations are solely based on customer replies.

RESEARCH GAP

After giving a thorough read to all the research papers stated in Literature

Review, I found a research gap i.e., A study on customer awareness

towards Mergers & Acquisitions of Indian Banks.

Here I am taking the research to a more specific level where I will be finding

how much the customer(the one who’ll be holding an Account in the banks
mentioned in the questionnaire) is aware towards M&As of his/her bank with

other nationalised banks.

SCOPE OF FURTHER STUDY

 The data collected from the way of questionnaire can be used to make a

comprehensive pre & post-merger study of various Indian banks.

 A thorough comparison will help the researchers to find the problematic

areas in the post-merger situation, which can be restudied to figure out

why people are not happy with their bank’s decision of undertaking

merger.

 Study can be conducted to determine corrective measures that must be

taken by banks while making this kind of strategic decision, for having a

fruitful result.
  The present research is on Awareness among people, and as

merger/acquisition is a complex topic of which not many people are

aware. So, further study can be done as in, how to educate people

regarding this which’ll help them to make good investing decisions in

the future.

 A study can also be conducted taking the present research as hypothesis,

in order to determine how mergers and acquisitions of banks would

benefit the nation as a whole.

REFRENCES:

https://boycewire.com/mergers-and-acquisitions-definition/

https://www.mca.gov.in/MinistryV2/mergers+and+acquisitions.html

https://www.edupristine.com/blog/mergers-acquisitions

https://www.researchgate.net/publication/

343442399_Merger_and_Acquisition_in_Banking_Sector

PAPER LINKS:

http://www.pbr.co.in/2020/2020_month/August/7.pdf

https://old.rrjournals.com/past-issue/rrijm200509010/

https://www.journalijar.com/article/37346/analytical-study-on-the-merger-of-bank-of-baroda,-

vijaya-bank-and-dena-bank,-on-the-back-drop-of-their-npas/
https://www.inspirajournals.com/uploads/Issues/543887903.pdf

https://www.gapgyan.org/res/articles/A%20STUDY%20ON%20MEGERS%20AND

%20ACQUISITIONS%20IN%20INDIAN%20SERVICES%20INDUSTRY-%20WITH

%20SPECIAL%20REFERRENCE%20TO%20BANKING%20COMPANIES.pdf

https://www.researchgate.net/publication/353886904_Recent_Mergers_in_Banking_Sector_-

An_Indian_Scenario

https://www.worldwidejournals.com/global-journal-for-research-analysis-GJRA/

recent_issues_pdf/2015/July/July_2015_1438321583__89.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3980653

https://www.worldwidejournals.com/paripex/recent_issues_pdf/2017/May/a-study-on-

consumer-awareness-in-banking-sector-after-the-merger-with-special-reference-to-state-bank-

of-india-and-state-bank-of-indore_May_2017_2478162146_8009801.pdf