ZENITH International Journal of Multidisciplinary Research
Year : 2012, Volume : 2, Issue : 5
First page : ( 192) Last page : ( 207)
Print ISSN : 0000-0000. Online ISSN : 2231-5780.

Strategic move of ICICI bank: A case study of merger of ICICI bank and bank of Rajasthan

Dr. Bhatnagar Abhinn Baxi*, Ms. Sinha Nitu**

*Associate Professor, Galgotias Business School, Greater Noida

**Research Associate, Galgotias Business School, Greater Noida

Abstract

Changing is the regulation of nature. Any business organization undergoes change on a continuous basis, technically termed as Corporate Restructuring. It can be defined as a strategy to achieve faster growth, desired capital structure and change in the ownership and control of company. The reasons behind change may be external or internal factors. In the present scenario, business organization undertakes changes to increase their cutting edge over the competition and enhance their leadership positions. It is a fundamental fact of finance that growth and capital employed are two basic drivers of the value of an organization. On the other hand neither growth nor improvement in ROCE is possible unless the company is under the control of competent, progressive and visionary management. The present paper is an attempt to understand the strategic move of ICICI bank. The case study will reveal the motives behind and synergies from such M&A activities. An attempt has been made to analyze, “Is corporate restructuring a tool to enhance the shareholders value”. Why ICICI Bank has taken such a strategic move and many more questions will be solved from the case study.

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