Assessing the Performance of Merged Banks: a Case Analysis

Exploring motives and impacts of bank mergers in the Indian banking industry

Abstract

The purpose of thepresent paper is to explore various motives of merger in Indian bankingindustry. This includes various aspects of bank mergers. It also compares preand post-merger financial performance of merged banks. Through literatureReview it comes know that most of the work done high lightened the impact ofmerger and Acquisition on different companies. The data of Merger andAccusations since economic liberalization are collected for a set of variousfinancial parameters. Ratios analyseshave been used to examine the pre and post-merger financial performanceappraisal of acquiring banks. In order to test the statistical significance,researcher has applied independent sample t-test. The result of thestudy indicates that the banks have been positively affected by the event ofMerger and acquisitions (M&As). These results suggest that merged banks canobtain efficiency and gains through Merger and Acquisitions (M & As) andpasses the benefits to the equity share holders’ in the form of dividend.