CONCEPTUAL UNDERSTANDING AND EVOLUTION OF MERGER & ACQUISITION AND ITS PERSONNEL IMPLICATIONS IN BANKING SECTOR

Abstract

The combining institutions carefully consider all financial elements of the combination. However, the majority of the time, human resource management-related variables, including poor interactions, ethnic barriers, job security, lack of motivation, and stress management, are not assessed thoroughly. As a result, banks have failed to achieve their objectives. The success of bank mergers and acquisitions depends to a great extent on the productivity and efficiency of the employees. It is the human resources of the banks that actually work as a key factor in running their operations efficiently and prudently. An economy's strength is determined by the stability and expansion of its finance industry. A strong economy is reflected in a country's banking sector. As a result, the majority of countries are implementing M&A agreements to reinforce their banking systems. For the purpose of taking advantage of banking synergy, numerous tiny and fiscally fragile banks have partnered with other enormous banks through mergers and acquisitions. It has aided banks in building up their cash reserves and improving their ability to extend credit.