A Study on Customer Awareness on Merger of Indian Bank with Allahabad Bank

Abstract

For the rapidly expanding banking sector in India, integration in the banking system is critical in acquisitions and mergers. It may be accomplished via lowering costs as well as boosting revenue. On August 30, 2019, India's Finance Minister surprised everyone by declaring a merger of ten main public banks into four. On September 16, 2019, Allahabad Bank's Board of Directors authorised the merger with Indian Bank. The main goal of this Restructuring is to improve asset quality.  The Programme of Merger calls for a stock conversion rate of 115 Indian Bank stocks for 1,000 Allahabad Bank shares, resulting in a 25 percent decrease in Allahabad Bank stockholders' value after the allocation of Sharers in Indian Bank. By 2022, the combined entity is projected to generate a revenue of Rs 10 trillion. However, it had to compete with both public and private sector banks in India to accomplish so. As a result, it stayed to be observed if the combination of the two Indian banks to grow Indian Bank's operations would yield in the coming year. In this study, we are going to investigate the customer's awareness and response to this merger.