Consolidation of banks is the means for growing economies towards improving the efficiency and reforming the structure of the banking industry in accordance to the contemporary requirements of corporate culture, ownership patterns, profitability and diversifications. Deregulation measures as a result of liberalization and globalization have resulted in increasing competition. This forced the banking industry to go for restructuring and reframing. Profit maximization is the major motivating force for private bank mergers. The rationale of acquisition of weaker banks by the public sector banks lies in increasing efficiency and competitiveness and safeguarding the interests of depositors and other stakeholders. Bank mergers have reduced the number of banks and increased the size of the banks enhancing the volume of business. However mergers should be planned and strategic. Technological and cultural aspects along with human resource management are areas that need to be handled carefully. The book is a modest effort at capturing the essence of this process of consolidation of banks. It explains the circumstances for embracing the policy of consolidation and also highlights the impact on the economy. The book brings into focus some country’s specific cases where consolidation of banks has taken place. The positive and negative impact of bank consolidation in various countries is evaluated and hence various ways for a balanced move are captured in this book.
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