The banking industry has transformed itself from a sluggish business entity to a dynamic industry. In the last two decades, the Indian banking sector has grown at an astonishing pace, marked by several paradigm shifts. And now, mergers and acquisitions have added a new dimension to the Indian banking industry. They will enable banks to achieve world class status and give more value to all the stakeholders.

The Indian banking indus try, which is governed by the Banking Regulation Act of India, 1949, has a long history of both public and private banking. Modern banking in India began in the 18th century, with the founding of the English Agency House in Calcutta and Bombay.

In the first half of the 19th century, three Presidency Banks were founded. After the 1860 introduction of limited liability, private banks began to appear, and foreign banks entered the market.

The beginning of the 20^th century saw the introduction of joint stock banks. In 1935, the Presidency Banks were merged to form the Imperial Bank of India, which was subsequently renamed the State Bank of India (SBI). Also that year, India's central bank, the Reserve Bank of India (RBI), began its operations.

After the Independence, the RBI was given an extensive regulatory authority over commercial banks in India. In 1959, the SBI obtained the state-owned banks of eight former princely states. Ten years later, i.e., by July 1969, roughly 31% of scheduled banks all over India was controlled by the government, as part of the SBI.

Mergers and Acquisitions, Indian Banking Industry, Banking Regulation Act, Nationalized Banks, Public Sector Banks, PSBs, HDFC Bank, ICICI Bank, Financial Liberalization, Industrial Development Bank, Scheduled Urban Co-operative Banks.