An Overview And Analysis Of Merger Of Bank Of Baroda & Dena Bank

Abstract

The banking industry plays a pivotal role in any economy and rapidly expanding in India. Competition is fierce, and public and private banks, regardless of the threat posed by foreign and local competitors, seek competitive advantage via mergers and acquisitions. Therefore, it is common to see companies merge or acquire one another. Reorganizing businesses via mergers and acquisitions (M&A) may improve their efficiency, competitiveness, and value to shareholders. There has been unprecedented consolidation in the banking sector because of the widespread idea that doing so would result in immeasurable benefits in the form of lower operating costs, more vital market positions, more stable profitability, and larger economies of scale. They have seen the regulatory landscape shift drastically, off-balance-sheet risk management and financial instruments explode in popularity, e-commerce, and online banking emerge, and the financial services sector undergoes massive consolidation. As a result of these factors, competition in India's banking sector is fierce. This article assesses how combining Bank of Baroda (BOB) with Dena Bank & Vijaya Bank might affect the company's stock price, profitability, and overall performance.