Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Topics:
Industrial Credit and Investment Corporation of India Ltd; ICICI Bank; Universal banking; Low cost deposits; Cost of funds; Development financial institutions; Statutory liquid and cash reserve ratios; Reverse merger; Long term operational fund; Deregulation of Indian banking sector; Non-performing assets; Indian banking industry; Financial sector reforms; Reserve Bank of India; Long-term funding
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https://casecent.re/p/20763
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Abstract
The banking sector deregulation that took place in India during the early 1990s posed a threat to the survival of development financial institutions (DFIs). They were cut off from the concessional funding extended by the government and were exposed to intense competition from local and foreign banks. Over a period of time, Industrial Credit and Investment Corporation of India Ltd (ICICI), which was set up as a DFI in 1955, underwent significant changes to meet these challenges. To exploit the synergies brought by universal banking, it went in for mergers and acquisitions and finally reverse merged with its subsidiary ICICI Bank.
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Abstract
The banking sector deregulation that took place in India during the early 1990s posed a threat to the survival of development financial institutions (DFIs). They were cut off from the concessional funding extended by the government and were exposed to intense competition from local and foreign banks. Over a period of time, Industrial Credit and Investment Corporation of India Ltd (ICICI), which was set up as a DFI in 1955, underwent significant changes to meet these challenges. To exploit the synergies brought by universal banking, it went in for mergers and acquisitions and finally reverse merged with its subsidiary ICICI Bank.