Master Thesis on

Corporate Restructuring in Public and Private sector banks

Submitted to

Christ Institute of Management

in partial fulfillment for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

by

VEENA SAREENA M
Register No: 1521134

Under the guidance of

PROF. SOUMYA V

2015 2017

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 DECLARATION

I, Veena Sareena M., do hereby declare that the Dissertation Project entitled Study on
Corporate Restructuring in Public and Private sector banks, has been undertaken by me
as part of my Post Graduate Diploma in Management curriculum. I confirm that the work
submitted is my own, and that appropriate credit has been given within this thesis where
reference has been made to the work of others. I have completed this study under the
guidance of Prof. Soumya V, Christ Institute of Management, Lavasa.

I also declare that this work has not been submitted for the award of any degree, diploma,
associate ship or fellowship or any other title in this Institute or any other College/University.

Place: Lavasa (Name & Signature of the

Candidate)
Date:

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 CERTIFICATE

This is to certify that the Dissertation Report submitted by Ms. Veena Sareena M on the title,
Study on Corporate Restructuring in Public and Private sector banks is a record of
research work done by her during the academic year 201617 under my guidance and
supervision in partial fulfillment of Post Graduate Diploma in Management. This Dissertation
Report has not been submitted for the award of any degree, diploma, associate ship or
fellowship or any other title in this Institute or any other College/University.

Place: Lavasa (Name & Signature of the Guide)

Date:

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 ACKNOWLEDGEMENTS

I am indebted to many people who helped me accomplish this dissertation successfully.

First, I thank Director, Dr. (Fr.) Jossy George of Christ Institute of Management for giving
me the opportunity to execute my research interest. I thank, Fr. Arun C Antony,
Coordinator, Prof. (Dr.) Binu P Paul, Head-Academics of Christ Institute of Management
for their kind support.

I thank Prof. Soumya V, for her support and guidance during the course of my dissertation
research and reporting. I remember her with much gratitude for her patience and motivation,
without which I could not have submitted this work.

I thank my parents for their blessings and constant support, without which this dissertation
would not have seen the light of day.

Student Name: Veena Sareena M

Register No: 1521134

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 TABLE OF CONTENTS

Declaration ii
Certificate iii
Acknowledgements iv
Table of Contents v
List of Tables vii
List of Charts /Graphs vii
Abstract viii

CHAPTER I 8
INTRODUCTION
1.1 INDUSTRY OVERVIEW 9
1.2 CORPORATE RESTRUCTURING 11
1.3 MERGERS AND ACQUISITIONS IN BANKING
INDUSTRY 12
CHAPTER II
LITERATURE REVIEW 19
CHAPTER III
RESEARCH METHODOLOGY 25
3.1 PROBLEM STATEMENT 26
3.2 SCOPE OF THE STUDY 26
3.3 PERIOD OF THE STUDY 26
3.4 OBJECTIVES OF THE STUDY 26
3.5 DATA COLLECTION 26
3.6 LIMITATIONS OF THE STUDY 27
CHAPTER IV
DATA ANALYSIS 28
4.1 CORPORATE RESTRUCTURING IN PUBLIC
SECTOR BANKS 30
4.2 CORPORATE RESTRUCTURING IN PRIVATE
SECTOR BANKS 36

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CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION 41
5.1 FINDINGS 42
5.2 SUGGESTIONS 43
5.3 CONCLUSION 48
BIBLIOGRAPHY 49

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 LIST OF TABLES

S.No Title Page No

1.3.1 List of Public sector banks in India 14
1.3.2 List of old private sector banks 16
1.3.3 List of new private sector banks 16
4.1.1 Mergers in public sector banks 30
5.2.1 Profitability of public and private sector banks 40
5.2.2 List of banks that proposed mergers between their associates 43

LIST OF CHARTS/GRAPHS

S.No Title Page No

1.1.1 Growth in credit off take 10
1.1.2 Credit take off from FY 2016 to FY 2017 11
4.1.1 Ratios of Oriental bank of Commerce 32
4.1.2 Ratios of Punjab National Bank 34
4.1.3 Ratios of Bank of Baroda 35
4.1.4 ratios of Kotak Mahindra Bank 37
4.1.5 Ratios of ICICI Bank 39
4.1.6 Ratios of HDFC Bank 40
5.2.1 Profitability of public sector banks 41
5.2.2 Profitability of private sector banks 41

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 ABSTRACT

In recent years, corporate restructuring has become an important factor in the economic and
financial environment of the world. This has been undertaken by firms for surviving in a
fierce and competitive business environment. The process of re organizing the company may
happen due to different factors and companies do it either by mergers and acquisitions or
demergers as per the need of the company.
Mergers and Acquisitions has become an important part for corporate restructuring in todays
world. This is the growth substance for which every organization runs behind and go for
restructuring by looking into advantages and disadvantages. The basic concept behind
M&As is that the belief of companies that there will be more value if companies combine
than the value achieved by operating as separate entities. Thus the understanding of the
concept of M&As and their impact in different sectors like finance, telecommunications,
automobiles, chemicals, IT etc., is important in todays world for every company. This thesis
presents the trend of corporate restructuring that took place in Public and private sector banks
and to fulfil the gap that is existing between public and private banks while adopting the
process of corporate restructuring and also the extent of impact it shows in banking economy.
The thesis also studies the recent M&As happened in banking industry and the problems
faced by banks in the process and how these problems can be overcome.

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