Pre and Post Merger Performance of Commercial Banks in India

Abstract

Introduction: Banks are treated as an important tool for economic growth and development by way of utilizing the savings arising in India as well as outside India. It also plays a vital role in the allocation of financial resources in an efficient productive manner to minimize the risks associated with the banking business. Growth and development of banks are possible only if they can manage their saving and channelize into lucrative investment proposals. newlineObjective: To make a comparative analysis of the financial performance of selected commercial banks in India and to know the impact of merger and acquisition on financial performance concerning profitability, Liquidity, operating performance and capital adequacy. newlineMethodology: 3 years pre and post-merger data have been taken for consideration under this study. Ratio analysis and t-test have been used to make a comparative analysis of the financial performance of selected commercial banks in India and to know the impact of merger and acquisition on financial performance. newlineFindings: there is a change in profitability ratios, efficiency ratios, Liquidity ratios and Capital adequacy performance also increased or decreased after a merger which helps in assessing the need for capital and risk associated with bank assets. Hypotheses made on profitability, liquidity, efficiency, and capital adequacy position show changes but these changes are not considered in nature. newlineResearch Implications: At the last Research feels that the study will show more merger and acquisition deals in the banking system due to less profitability and a high amount of NPA and provide a more valuable contribution to become Indian banking system more effective. newlineOriginality/Value: This study is based on the examined and analysed in Pre and post-merger performance of Indian commercial banks during the 2010-2015 period. newline newline