The Unmet Objectives Of Bank Mergers

Globally, there are ample cases of mergers of banking and financial institutions (BFIs) – from JP Morgan Chase & Co. and Bank One Corporation to Bank of America and Merrill Lynch. But, they were all voluntary desires of the banks. In neighbouring India, the merger of big banks like Punjab National Bank and Indian Bank, or the merging of Union Bank of India with other smaller banks have had positive impacts, consolidating their strength, creating synergic effect and benefitting both investors and customers. Researchers at Reserve Bank of India (RBI) also found that bank mergers in that country have not only benefitted the banking sector but also there have been improvements in financial performance and efficiency of the merged banks.