Exploring the Financial Symphony: Evaluating the Performance of Selected Indian Banks Before and After Merger

Abstract

Within a nation’s progress tapestry, the banking sector weaves the most crucial threads, shaping both national and economic advancement. The resilience and adaptability of the banking system serve as a barometer for a country’s economic growth. Mergers and acquisitions (M&A) stand as strategic brushstrokes, crafting a canvas of business reconfiguration, boosting competitiveness and amplifying shareholder value by enhancing operational efficiency. The performance of selected Indian banks before and after the merger is evaluated in this article. The study considered five parameters that is Net profit margin, operating profit margin, return on asset, return on equity and cost to income margin. The merger data underwent analysis using various financial ratios, evaluated through a paired T-test before and after the merger. To investigate the link between the variables for both periods, correlation analysis is applied. The result highlight that mergers have no significance impact on the financial performance of the selected banks and the cost efficiency has increased as a result of mergers.

Keywords: Banking Sector, Correlation, Mergers, Paired Sample T-Test

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