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ISSN 2063-5346
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PRE AND POST EFFECT OF MERGER ON FINANCIAL PERFORMANCE: THE CASE OF MEGA MERGER BANKS

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Prof. Trupti Mandar Joshi1 , Prof. Anuja Rishi Limbad
» doi: 10.31838/ecb/2023.12.s1-B.313

Abstract

In the unpredictable world, rapidly changing technology has made tremendous changes in the corporate world. Further, the forces of globalisation are putting companies in intense competition. The current study focuses on the mega-merger of banks that happened in April 2020. Pre- and post-merger financial evaluations are done by using the parameters of the CAMEL (Capital adequacy, Asset quality, Management, Earnings, and Liquidity) model of merged banks. A total of four banks are involved in Mega mergers. The data is collected from various secondary sources such as annual reports of banks involved in mega-mergers, Money control, business reports, and magazines. Pre- and post-merger financial performance evaluation is done using paired T-tests and compares the performance of banks involved in mega-mergers. Although profitable, banks lag short in the credit lending area and deposit creation post-merger. Indian Bank is relatively inactive compared to all other banks merged in the mega-merger in 2020.

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