scholarly journals Perspective of Merger and Acquisition in the Indian Banks - A Sectoral Analysis

2011 ◽  
pp. 6-14
Author(s):  
Akankshya Arun Das ◽  
Bhagaban Das
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Statistical Significance ◽  
Banking System ◽  
National Development ◽  
Foreign Banks ◽  
Development Economic ◽  
New Era ◽  
Banking Business ◽  
Indian Banks

MERGER & ACQUISITION (M AND A) aims towards business restructuring thereby increasing competitiveness and shareholders’ value via increased efficiency. The banking industry has experienced an unprecedented level of consolidation on a belief that incomparable gain can accrue through expense reduction, increased market power, reduced earnings volatility and scale and scope of economies. The banking sector is one of the most important instruments of the national development. Economic development of the country is evident through soundness of the banking system. Deregulation in the financial markets, markets liberalization, economic reforms have witnessed astounding changes in the banking industry leading to incredible competitiveness and technological sophistication leading to a new era in banking. Since, then every bank is relentless in their endeavor to become financially strong and operationally efficient and effective. When deregulation dawned the horizon non banking financial institutions, private and foreign banks entered the fray with their hitechs. The outwit competition in the banking industry is bound to vault further down the lane, which in turn would make banking business more challenging and perplexing. A paradigm shift is discernable in the Indian Banking arena. This article concentrates on some M and A that have occurred post liberalization in India to understand the intents of “the Targets” and “the Acquirers”. The purpose of the present paper is to explore various motives of merger in Indian banking industry. The data of Merger and Acquisitions since economic liberalization are collected for a set of various financial parameters. Independent T-test used for testing the statistical significance and this test is applied not only for ratio analysis but also effect of merger on the performance of banks. This performance being tested on the basis of two grounds i.e.. Pre-merger and Post- merger. Finally the study indicates that the banks have been positively affected by the event of merger.

EMERGING TRENDS IN BANKING SECTOR - ITS CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Karigoleshwar .
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Major Change ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Emerging Trends ◽  
Reserve Bank ◽  
Challenges And Opportunities ◽  
Multiple Regions

In financial sector the banking industry is the largest player, has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition. Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. The present era the cashless transactions, E-cheques, mobile wallets. The paper attempts to present the emerging trends and its challenges that recently emerged in the banking sector with special emphasis on digitization. It will be useful to the academicians, banking and insurance personnel, students and researchers. Common readers also know the latest innovations in banking sector

Marketing of Banking Services in India

2017 ◽  
pp. 107-133
Author(s):  
Rakhi Arora
Keyword(s):  
Banking Sector ◽  
Technological Development ◽  
Banking System ◽  
Foreign Banks ◽  
Indian Society ◽  
Reserve Bank ◽  
Nationalised Banks ◽  
The Government ◽  
Indian Banks ◽  
Reserve Bank Of India

Banking sector plays an important role in Indian Financial Sector.It has a long history that has gone through various stages of development after Liberalization, Privatization, and Globalization (LPG) has taken place. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks, which are controlled and governed by Reserve Bank of India (Central Bank of India) and Ministry of Finance. In this era, the government has issued licenses to the new entrants to establish new banks to serve the Indian society. This chapter focuses on to show the various undergone phases of Indian banking system, growth of deposits and credits, technological development in Indian banking sector, services provided by the Indian banks, benefits and challenges faced by the Indian banks.

scholarly journals SISTEM PERBANKAN DALAM NEGARA KESEJATERAAN DI INDONESIA

to-ra ◽  
2018 ◽  
Vol 4 (2) ◽  
pp. 52
Author(s):  
Hendri Jayadi Pandiangan
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
System Development ◽  
Banking System ◽  
National Development ◽  
Economic Life ◽  
Development Economic ◽  
The Public ◽  
Bank Management ◽  
The People

Abstract   The banking system in Indonesia is regulated in Law No.7 of 1992 (amended by Law No.10 of 1998). The development of banking shows the dynamics in economic life. The banking sector in the life of a country is an agent of development, because banks are nancial institutions that have the function as nancial intermediary institutions, namely as institutions that collect funds from the public in the form of deposits and channel them back to the public in the form of credit or nancing. Banking is also an agent of trust, bearing in mind that there is one principle of bank management, the duciary principle. The provisions of Article 4 of Act Number 7 of 1992 concerning Banking as amended by Act Number 10 of 1998 states that Indonesian banks aim to support the implementation of national development in order to improve equity, economic growth, and national stability towards improving the welfare of the people at large.   Keyword:banking system; development; economic growth.

scholarly journals Study on the Changing landscape of financial Services in Indian Banking System Opportunities and Challenges

2018 ◽  
pp. 1-10
Author(s):  
Pradeep M.D. ◽  
Sonia Delrose Noronha
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
New Era ◽  
Integration Of Technology ◽  
Technological Developments ◽  
Indian Banks ◽  
Tools And Techniques ◽  
User Friendly

Financial institutions are the backbone of the Indian economy. Since economic liberalization after 1990, the Indian banking sector has witnessed growth along with remarkable improvement in its quality of assets and efficiency. Information Technology has become one's way of life in today's world that, it is difficult to imagine a world without IT. Technology which facilitates handling increased volumes at higher levels of efficiency. Hence, there is an imperative need for not mere technology up gradation but also integration of technology with the general way of functioning of banks. The Banking sector is no exception to this changing scenario which is sweeping across the world. Technology has given birth to a new era in banking. Indian banks are continuously encouraging the investment in information technology through ATMs, Netbanking, Mobile and Tele-banking, Automation of the banks, increasing use of plastic money, and the establishment of call centers. Nowadays banks are moving from disbursed operations to a centralized environment, powered by Information Technology. Banks are using new tools and techniques to reach better to its customers by offering tailor made products and Services. The changes in the banking landscape facilitated banks to compete in the new environment. Banks of the future will be a user friendly enterprise with technology aiming to achieve sustainable and valued business status. Information Technology has been imbibed in the banking operations with a vision to provide “Anytime Anywhere Banking” with customized services. In this paper we have discussed and analyzed the Changing landscape of financial Services in Indian Banking System in terms opportunities and challenges of technological developments, legal regulatory framework, and risk management.

scholarly journals Topical Issues of Improvement of Banking System And Legislation In Uzbekistan

2021 ◽  
Vol 04 (06) ◽  
Author(s):  
Prof. Dr Said Gulyamov ◽  
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Legal Regulation ◽  
State Regulation ◽  
Foreign Banks ◽  
Foreign Direct Investments ◽  
Banking Services ◽  
Banking Systems ◽  
Doing Business ◽  
Banking Business

Banks and banking systems are among the most important mechanisms in the development of a country's economy and the creation of favourable conditions for doing business. The internationalization of the banking business poses new challenges for the scientific community to find optimal solutions that reduce banking risks, strengthen national banking systems and improve banking technologies. Accordingly, today it is important to strengthen the banking system and its legal regulation in Uzbekistan. In this regard, it is important to analyse the development of the domestic banking system, including in terms of its legal support. This article investigates the banking system, bank services and their regulation in Uzbekistan, where the role of foreign banks is not sufficiently regulated and is not attractive for foreign banks. This study identifies the problems of further improvement and liberalization of banking legislation. The focus is on the lack of banking practices and legislation, and on the introduction of new foreign banks in the domestic banking services market. However, the development of the country’s economy and the involvement of foreign direct investments are impossible without a strong banking services market. It is noted that one of the important conditions for the development of a banking system in Uzbekistan is the formation of an effective mechanism of state regulation and improvement of legislation directed at creating favourable conditions for foreign banks to enter Uzbekistan’s domestic market. The article examines the implementation of international best practices in state regulation of the banking system and banking services that will serve to modernize the system of banking services, attract foreign investment in the banking sector, and harmonize banking legislation.

scholarly journals Reforms, Productivity, and Efficiency in Banking: The Indian Experience (Distinguished Lecture)

2005 ◽  
Vol 44 (4I) ◽  
pp. 505-538 ◽  
Author(s):  
Rakesh Mohan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking System ◽  
Peer Pressure ◽  
Market Discipline ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Reform Period ◽  
Indian Banks ◽  
Interest Expense

India embarked on a strategy of economic reforms in the wake of a serious balance-ofpayments crisis in 1991. A central plank of the reforms was reform in the financial sector and, with banks being the mainstay of financial intermediation, the banking sector. The objective of the banking sector reforms was to promote a diversified, efficient and competitive financial system with the ultimate objective of improving the allocative efficiency of resources through operational flexibility, improved financial viability and institutional strengthening. Beginning from 1992, Indian banks were gradually exposed to greater domestic and international competition. India’s approach to banking reforms has been somewhat different from many other countries. Whereas there has not been privatisation of public sector banks, through a process of partial disinvestment a number of public sector banks have been listed in Stock Exchanges and have become subject to market discipline and greater transparency in this manner. Besides, newly opened banks from the private sector and entry and expansion of several foreign banks resulted in greater competition. Consequent to these developments, there has been a consistent decline in the share of public sector banks in total assets of commercial banks and a declining trend of Herfindahl’s concentration index. Improvements in efficiency of the banking system were reflected in a number of indicators, such as, a gradual reduction in cost of intermediation (defined as the ratio of operating expense to total assets) in the post reform period across various bank groups (barring foreign banks), and decline in the non-performing loans. As a result of these changes, there has been an all-around productivity improvement in the Indian banking sector. While the cost income-ratio (i.e., the ratio of operating expenses to total income less interest expense) as well as net interest margin (i.e., the excess of interest income over interest expense, scaled by total bank assets) of Indian banks showed a declining trend during the post-reform period, the business per employee of Indian banks increased over three-fold in real terms exhibiting an annual compound growth rate of nearly 9 percent. At the same time, the profit per employee increased more than five-fold, implying a compound growth of around 17 percent. Branch productivity also recorded concomitant improvements. Such productivity improvements in the banking sector could be driven by two factors: technological improvements, which expands the range of production possibilities and a catching up effect, as peer pressure amongst banks compels them to raise productivity levels. As far as the future of Indian banking is concerned, a number of issues, such as the credit to small and medium enterprises, customers’ interests and financial inclusion, reducing procedural formalities, listing of the public sector banks in the stock exchange and related market discipline are of paramount importance.

scholarly journals Banking Sector Reforms: Policy Implications and Fresh Outlook

2011 ◽  
Vol 2 (2) ◽  
pp. 55-64
Author(s):  
R. K. Uppal
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Policy Implications ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Global Challenges ◽  
The Future ◽  
Global Banks

Various reform measures introduced in India have indeed strengthened the Indian banking system in preparation for the fresh global challenges ahead. The present paper reviews the banking sector reforms policy, crucial issues and agenda for the future. On the basis of certain parameters, like productivity, profitability and NPAs’ management, the paper concludes that foreign banks and new private sector banks are much better in performance as compared to our nationalized banks in the post-banking sector reforms period. The paper ends with the future agenda for the Indian banking industry, particularly for public sector banks to make them efficient and strong, to compete with the global banks.

scholarly journals The Needs for Official Sharia Compliance Audit Institution to Protect Customers of Islamic Banking: an Application through Ḥisba

2017 ◽  
Vol 5 (1) ◽  
pp. 75-84
Author(s):  
Bharudin Che Pa ◽  
Mohd Roslan Mohd Nor ◽  
Sanusi Abdul Manaf
Keyword(s):  
Banking Industry ◽  
Banking System ◽  
Islamic Banking ◽  
Contributing Factors ◽  
New Era ◽  
Compliance Audit

The emergence of Islamic banking system in most banks in Malaysia nowadays bring a new era in Malaysian banking industry. This article discusses the needs for official sharia compliance audit institution to protect customers of Islamic banking. By using literature studies, this article concludes that one of the contributing factors which lead people to adopt Islamic banking system is their awareness of the serious and intolerable prohibition of riba. Some of the ways to ensure customers are well protected are to establish ḥisba institution as Sharia compliance audit body. The establishment of ḥisba institution allows it to stop the violation of Allah’s prohibition and protect the society. With the establishment of the institution, it can play an important role to solicit advice and to monitor performance so that the banks operate strictly as according to the Islamic regulations.

scholarly journals THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 12 (24) ◽  
Author(s):  
Goran Mitrović ◽  
Živko Erceg
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Foreign Banks ◽  
Dayton Agreement ◽  
The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

scholarly journals MODIFIED SERVQUAL MODEL AND EFFECTS OF CUSTOMER ATTITUDE AND TECHNOLOGY ON CUSTOMER SATISFACTION IN BANKING INDUSTRY: MEDIATION, MODERATION AND CONDITIONAL PROCESS ANALYSIS

2017 ◽  
Vol 18 (5) ◽  
pp. 974-1004 ◽  
Author(s):  
Rizwan Raheem AHMED ◽  
Jolita VVEINHARDT ◽  
Dalia ŠTREIMIKIENĖ ◽  
Muhammad ASHRAF ◽  
Zahid Ali CHANNAR
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Process Analysis ◽  
Perceived Value ◽  
Online Banking ◽  
Foreign Banks ◽  
Banking Service

Banks are very important financial services sector, and in banking sector there is an intense competition amongst the local and foreign banks throughout the world. The objective of this research is to analyse the effects of perceived value and customer trust, and role of technology in banking service qualities and customers’ satisfaction in Pakistani context. For this purpose we employed modified SERVQUAL model with four dimensions such as empathy, competence, reliability, and online service. An adapted questionnaire was used to carry out this survey research, and collected 830 responses from the customers of Pakistani banking industry. We used factor analysis, confirmatory factor analysis, and bootstrapping methods to carry out this research. The results of the study demonstrated that our four-dimensional model of modified SERVQUAL has a significant impact on overall customer satisfaction. It is further concluded from the bootstrapping method that modified SERVQUAL dimensions and customer satisfaction are positively mediated by the perceived value and trust. Finally, it is also concluded that the implementation of technology serves as moderating variable in the banking sector. The outcomes of this research are beneficial to the senior management of banking sector in order to implement the effective and customised online banking structure to gain competitive advantages, and provide vibrant online banking services that enhance the standard and ease of services to the customers and earn their confidence. The originality and novelty of this research provide a significant contribution in the application of SERVQUAL model specifically for the banking service quality dimensions and customer satisfaction in marketing research.

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