A study on post reform bank mergers In india implications on stock returns And efficiencies

Abstract

The government Reserve Bank of India RBI and bank managers are newlinein favour of bank consolidation for various reasons While the government intends newlineto create a few big banks that could compete with the international banks RBI newlinecompels the stronger banks at times to acquire structurally weaker banks newlineBank managers on the other hand appear to prefer mergers to achieve quick newlinegrowth and to gain from economies of scale and scope Such mergers driven by newlinecommercial considerations have happened more frequently in the postreform newlineperiod However international studies and Indian studies on bank mergers indicate newlinethat the evidence in favour of bank m newline newline