An Analytical Study On The Role And Growth Of Merchant Banking In India At Union Bank Of India - Yousufguda, Hyderabad.

Abstract

The rapid evolution of India’s financial landscape has elevated the prominence of merchant banking as a critical intermediary in capital formation, corporate financing, and advisory services. This study investigates the role and growth of merchant banking, with a case focus on Union Bank of India, through a structured survey of 80 respondents spanning diverse age groups, occupations, and financial backgrounds. Key metrics assessed include awareness and usage of merchant banking services, satisfaction levels, service preferences, and perceived contribution to economic development. Quantitative analysis—employing descriptive statistics and a chi-square test—reveals that while 70% of respondents are aware of merchant banking, only 40% have utilized its services. IPO support emerges as the most recognized and preferred offering, and reputation alongside service quality are identified as primary factors influencing bank selection. The chi-square statistic (χ²=31.75, df=1, p<0.05) confirms a significant association between awareness and positive perceptions of merchant banking’s economic impact, leading to rejection of the null hypothesis. Findings indicate moderate satisfaction (55%) with existing services and underscore an awareness-usage gap. Recommendations include enhanced financial literacy initiatives, streamlined digital access, and proactive promotion of under-leveraged services. These measures aim to convert awareness into engagement, thereby reinforcing merchant banking’s contribution to India’s financial sector growth.