Global Research Review on Amalgamation in Regional Rural Banks- A Literature Review

Abstract

Mergers and Acquisitions are the trend-setting tools in the current scenario of the Banking Industry. From the different waves of mergers and acquisitions, it is observed that the Banking Industry could grow to better heights with the strategic decisions of the Mergers and Acquisitions process, known as Amalgamation in the Banking Industry in India. the mergers and Acquisitions process could gain importance during the 1980s and onwards (Renuka & Dinesh, 2019).

In India we can see this uptrend for amalgamation of different banks from the 1990s onwards. During this amalgamation process, both stages that are pre-amalgamation and post-amalgamation have to be looked at not only from the wealth maximization for the owners and management. But also, from the point of stake holders who have a major role to play in the growth of the Regional Rural Banks (RRBs). These are Customers and Employees.

The present study focuses on the two stake holders- Customers and Employees. The research is carried out by considering the RRBs in the state of Karnataka, India. The available literature is very less on the RRBs of Karnataka. These works also talk about the financial performance of the RRBs. Only countable works have thrown light on the HR aspects but not specifically the satisfaction of employees and customers. Hence the present study.