The merger of ICICI Bank, a leading private sector bank and Bank of Rajasthan, an old generation private sector bank was announced officially on 21st May 2010. The merger announcement came in the wake of mounting pressure on Bank of Rajasthan because of its unprofessional conduct, misleading share pattern, mismanagement of accounts, and irregularities in the operations. In order to safeguard the interests of all the stake holders and to rescue the bank from plunging any further, RBI initiated a complete scrutiny of the bank's operations. RBI also opined that the merger of Bank of Rajasthan was inevitable for the Bank's sustainability. As Bank of Rajasthan started scouting for a suitable White Knight, ICICI Bank became the appropriate match for the marriage as it approached Bank of Rajasthan at the right time. Though the senior management of both the banks was convinced about the merger looking at the value enhancement it would create for both entities however, the announcement left the stakeholders with mixed feelings.Most of the stakeholders reacted positively to the merger however, the employees were extremely anxious and concerned about their future in the merged entity. This unfavorable reaction from the employees delayed the deal. This case focuses on the importance of Human Resources in M&Aprocess during integration phase and the roadmap for successful integration keeping employees interests at the core.
Tatuskar, S., & Maheshwari, S. (2010). Role of HR in Mergers: A Study of Mergers of ICICI Bank & Bank of Rajasthan LTD. IMT Case Journal, 1(1), 28-41. https://jetbm.imtnagpur.ac.in/journal/vol1/iss1/3