Universal Journal of Accounting and Finance Vol. 9(6), pp. 1247 - 1257
DOI: 10.13189/ujaf.2021.090604
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Pre- and Post-Merger Financial Analysis of Banks

Divyesh Khushalani , Manish Sinha ^*
Symbiosis Centre for Management and Human Resource Development, Symbiosis International (Deemed University), Pune, Maharashtra, India

ABSTRACT

This work intends to inspect the financial performance of our country's banks before and post the merger. Acquisitions or mergers have been implemented as a tool these days as a respite for distressed banks. By Mergers and Acquisitions, banks are restructured to increase shareholders' value and competitiveness by increasing efficiency. For this work, a specimen of four bank mergers that happened after liberalization was taken and they were analyzed based on financial parameters, for example, Net Profit Margin (NPM), Dividends per Share (DPS), Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Credit Deposit Ratio. This set of parameters chosen is unique when compared to past works. Paired t-test was implemented to identify a substantial change between the financial particulars before and after the merger. The paper also looks at the study's future scope, such as analyzing the stock price movements before and after the merger. This study then can conclude whether the merger of the banks involved was beneficial for the banks and the Indian banking industry or not.

KEYWORDS
Net Profit Margin (NPM), Dividends per Share (DPS), Capital Adequacy Ratio (CAR), Return on Assets (ROA), Credit Deposit Ratio

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Divyesh Khushalani , Manish Sinha , "Pre- and Post-Merger Financial Analysis of Banks," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1247 - 1257, 2021. DOI: 10.13189/ujaf.2021.090604.

(b). APA Format:
Divyesh Khushalani , Manish Sinha (2021). Pre- and Post-Merger Financial Analysis of Banks. Universal Journal of Accounting and Finance, 9(6), 1247 - 1257. DOI: 10.13189/ujaf.2021.090604.