ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

T R BishnoiSubscribe to T R Bishnoi

Mergers and Acquisitions of Banks in Post-Reform India

A major perspective of the Reserve Bank of India's banking policy is to encourage competition, consolidate and restructure the system for financial stability. Mergers and acquisitions have emerged as one of the common methods of consolidation, restructuring and strengthening of banks. There are several theoretical justifications to analyse the M&A activities, like change in management, change in control, substantial acquisition, consolidation of the firms, merger or buyout of subsidiaries for size and efficiency, etc. The objective here is to examine the performance of banks after mergers. The hypothesis that there is no significant improvement after mergers is accepted in majority of cases--there are a few exceptions though. Therefore, the strategy of M&A to consolidate banks for purposes of efficiency seems flawed. Future banking policy must take note of this empirical reality and long-drawn experience of the past two decades.

Data System for Khadi and Village Industries-An Evaluation

Data System for Khadi and Village Industries An Evaluation T R Bishnoi The currently available data on khadi and village industries are quite inadequate and fail to provide a useful profile of village industries. This is partly due to the inappropriate data system in use.

Banking Regulations and Islamic Finance

Finance T R Bishnoi S RAMACHANDRAN's paper on 'Banking Regulations and Islamic Finance' (December 23-30, 1989) was interesting but missed to note two important points: (i) The concepts of interest and profits inIslamic finance are different from those of the classical and Keynesian economics. (2) The viability of Islamic finance or banking is in doubt as the transformation of the entire interest based banking into profit and loss sharing (PLS) of Islamic type; as undergoing in Iran and Pakistan, seems to be retrogressive in effect encouraging disintermedia- tion process in the economy. The purpose of this note is to substantiate these two points.
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