An Empirical Study on Mergers and Acquisitions on Job Security of Employees in Indian Banks
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Abstract
Financial sector reforms and liberalization are the by-products of globalization since 1990s. But they have brought the problem of efficiency and profitability to the fore of the banks. The increasing competition among banks and constant decline in profitability has created a lot of pressure on banks to merge and be acquired by other banks. With high competition, deregulation of rates of interest, and arrival of foreign and domestic banks, business of banks is no longer limited to just lending and deposits at regulated rates. In this changed economic scenario, only those banks can survive which can adopt proper cost control and customer-focused approach. Mergers and Acquisitions (M&A) has been a suitable option for banks to achieve a competitive edge. This trend is increasing among private and public sector banks but M&A somehow affects the overall productivity and job security of employees.
Hence, the aim of this study is to analyse the impact of mergers and acquisitions on job security of employees in Indian banks. The process of mergers and acquisitions is increasing in India. In order to fulfil this objective, this study is based on primary data collected through online survey. A self-structured questionnaire was prepared to share among employees in Indian banks to know about their opinion about mergers and acquisitions of their banks and impact on their job performance and security.