CASE STUDY MERGER HDFC BANK CENTURION BANK PUNJAB

In the initial stage, after merging, there may not be a significant improvement due to teething problems but later they may improve upon. This situation was further worsened by the fact that banks were not permitted by regulators to underwrite securities when the bond market was booming. Presentation on Strategic Partnerships with foreign institutions: During this time, small firms with little market share consolidated with similar firms to form large, powerful institutions that dominated their markets. Additionally, the scheme of amalgamation provides for a one-time increment to all existing employees of Lord Krishna Bank. Market Price of the Share has continuously increased during the post merger period and the Average Share Price has risen from Rs. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies.

The board first met on 23 May Its been 25 days there is no response to my application. Creation of a Financial Super Market or a Universal Bank A recent trend is to promote the concept of a financial super market chain, making available all types of credit and non-fund facilities under one roof under one umbrella organization or through specialized subsidiaries. There are various developments, changes within the Indian economy and deregulations occurring that have the potential to drastically change the way this industry functions in the future. To date, most of the mergers that the Director has concluded would likely have prevented or lessened competition substantially have raised concerns about the ability of the merging parties to unilaterally exercise market power. However, with prudent provisioning, the net NPA have been arrested at 1.

According to strategic management and microeconomics, the expression horizontal merger delineates a form of proprietorship and control. Types of Conglomerate Mergers There are two main types of conglomerate mergers — the pure conglomerate merger and the mixed conglomerate merger.

These banks due to their late start have access to state-of the- art technology, which in turn helps them to save on manpower costs and provide better services. In practice the acquiring firm and the acquired firm may share the advantage between themselves. Considerable fragmentation exists in the Banking sector for banks with market capitalization of less than Rs.

  HIGHAM ST JOHNS HOMEWORK

It is also meant for the reduction of transactions costs like marketing expenses and sales taxes. I have provided all the document said by the PF agent i.

Hdfc and centurion bank merger case study – Analytical Essays

The European Commission normally is not bothered about bakn concerns’ in what is commonly known csae ‘safe harbors’. One such way is lowering in the intermediation costs. This has spurred the Indian banks to consolidate to achieve size and scale comparable to foreign banks. From the preceding examples, it is clear that allowing foreign entry is helpful if not essential for the development and betterment of the financial markets.

In the coming years globalization would spread further on account of the likely opening up of financial services under WTO.

case study merger hdfc bank centurion bank punjab

The surge in globalization of finance has also gained momentum with the technological advancements which have effectively stuxy the national borders in the financial services business. Ownership control of the company in turn conveys effective control over the assets of the company, but since the company is acquired intact as a going concern, this form of transaction carries with it all of the liabilities accrued by that business over its past and all of the risks that company faces in its commercial environment.

Panic created by the Nath Bank in the fifties and Laxmi bank and Palai Central bank in had prompted this legislative move. To reduce their costs, the domestic banks have started cutting down their branch networks and exploring alternative less-costly delivery channel like phone banking and net banking.

case study merger hdfc bank centurion bank punjab

It can cross-sell its banking products through the LKB network, including traditional banking products and fee-based services like wealth management products, to affluent NRI customers. Do we need changes in our legal framework for facilitating mergers bnak acquisitions in the Indian banking industry? But there is not automatic link between size and profitability.

  MICHAEL GOHEEN DISSERTATION

In the above example, the share of B in the combined entity is: Even by Indian standards, most of the banking sector is disadvantaged by size: Acquisition by Indian pharmaceutical companies have also taken centre stage this centuriob. It can be noted that vertical merger is a type of non-horizontal merger.

case study merger hdfc bank centurion bank punjab

If internally there is a problem due to lack of resources and managerial skill it can to the same externally through mergers and acquisitions. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. Suzlon has taken controlling stake in the company.

Centurion Bank of Punjab | Revolvy

Creation of a Financial Super Market or a Universal Bank A recent trend is to promote the concept of a financial super market chain, making available all types of credit and non-fund facilities under one roof under one umbrella organization or through specialized subsidiaries.

However, what can be considered as a breakthrough in banking services was the entry to private sector banks whish was initiated in Vertical Merger Vertical mergers refer to a situation where a product manufacturer merges with the supplier of inputs or raw materials.

Net profits grew by India has however remained more or less insulated. Hence such banks also become hdfd targets of acquisition.

Hdfc and centurion bank merger case study

In short, a company can achieve its growth objective by: The reaction of the related parties to the merger announcement is significantly negative. Also Fee-based income has become crucial for banks as margins in their core business of ;unjab are on a decline due to competition and interest rate pressures.

Extra ordinary item 0 0 Prior year adjustments 0 0 Equity capital