Paper Details

The main objective of this paper is to analyse pre and post-merger financial performance of merged banks of selected four Indian banks for a period of 2004-2017 and performance is assessed based on different factors which are as follows gross profit, debt equity ratio, total debt ratio, proprietary ratio, return on assets, return on equity, net profit, current assets turnover ratio, fixed assets turnover ratio, total asset turnover ratio and Current ratio. Data were collected from the published annual report, moneycontrol.com website and analysis was applied with paired t-test through statistical package for social sciences (SPSS) and significance level considered as 5%. The study found a positive impact of ICICI bank after merger and other banks decreased after merger. Kotak Mahindra Bank and HDFC bank has experienced an adverse consequences after the merger on the many of the ratios. However, it is seen that the majority of the ratios have declined in the post-merge. By applying the Comparative Analysis, the paper also assesses the financial performance of acquiring bank with the banking industry. The KMB and HDFC Bank had more net profit than other banks in the merger post-period of time and remaining of the banks have their net profit less than the average.

M&A, evaluation, performance, Banks in India, ratios, T-TEST