An Evaluation of Financial Performance Before and After Merger and Acquisition of Select Indian Banks: An Empirical Study

Abstract

This research study aims at studying the financial performance of banks before and after the merger by analyzing financial parameters of both target and bidder. The study is descriptive and analytical & consider secondary data of select sample banks merged between 2000 to 2010 which include both public and private sector banks. Statistical tools both descriptive and inferential are applied for analysis. Statistical parameters such as mean, correlation, t-stat, P Value are applied to arrive at results. The results signifies that private banks HDFC and ICICI observed synergies in all parameters compared to public sector banks due to a voluntary merger. On the other hand, the synergies created in few parameters are offset with negative synergies in other parameters for public sector banks due to forced merger of weak and loss making entities.