FINANCIAL PERFORMANCE ANALYSIS OF PRE AND POST MERGER POSITION: A COMPARATIVE STUDY OF SELECTED BANKS

Abstract

Commercial banks' ideology, attitudes, and functioning have all changed dramatically as a result of the reforms, and banks are now required to handle significant inflows and outflows of financial resources. As a result, a robust financial system is needed via consolidation. In such circumstances, it is essential to investigate the effect of consolidation on several bank profitability and efficiency metrics. In this paper, we compare the pre-merger and post-merger performance of HDFC Bank and Centurion Bank of Punjab Ltd, ICICI Bank and The Bank of Rajasthan Ltd, Kotak Mahindra Bank and ING Vyasa Bank, and Kotak Mahindra Bank and ING Vyasa Bank using various efficiency parameters such as Profit Per Employee, Business Per Employee, Investment and Advances, Interest Income, Return on Assets, and so on. The research found that following the merger, all of the banks' metrics improved.