PRE-MERGER AND POST-MERGER

FINANCIAL PERFORMANCE OF
INDIAN COMMERCIAL BANKS
Aanchal Narula
M-13-30

INTRODUCTION
Mergers and Acquisition is a useful tool for the
growth and expansion in any Industry and the
Indian Banking Sector is no exception.
It is helpful for the survival of the weak banks by
merging into the larger bank.

PURPOSE OF STUDY
Explore various motives of merger in Indian banking industry
which includes various aspects of bank mergers.
Compares pre and post merger financial performance of merged
banks with the helps of financial parameters like, Gross Profit
margin, Net Profit margin, operating Profit margin, Return on
Capital Employed, Return on Equity, and Debt Equity Ratio.
Shows the impact of Mergers and Acquisitions in the Indian
Banking sector and two cases have been taken for the study as
sample to examine the as to whether the merger has led to a
profitable situation or not.

OBJECTIVES
To understand the motive of the acquisition deal.
To analyse and compare the pre and post-merger financial performance
of the acquirer bank.
To recommend if merger and acquisition is a viable tool to enhance
financial performance of Indian commercial banks.
To study the purpose of mergers and acquisitions in the Banking sector
To study the benefits of mergers and acquisitions.
To study the risk involved in merger and acquisition.

METHODOLOGY
Sources of Data: The study is based on secondary data. The financial and accounting data
of banks is collected from the Annual report of the select Banks to examine the impact of
Mergers and Acquisitions on the performance of the sample banks.
Sample: Two banks, one from Public Sector and the other from Private Sector, are taken as
the sample banks to evaluate the impact of mergers and acquisitions on the performance of
the Banks.
Period of the Study: To compare the performance of Banks, three years pre merger and
three years post merger financial ratios are being computed and compared. The year of
merger was considered as a base year.
Financial Parameters: The performance of the Banks is made in respect of the financial
parameters such as Net Profit Margin, Operating Profit Margin, Return on Assets, Return on
Equity. Debt Equity Ratio, Earning Per Share and Market Share Price.
Hypothesis

FLOW
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. BENEFITS OF MERGERS AND ACQUISITIONS
4. CHANGES IN INDIAN BANKING SCENARIO
5. MOTIVES BEHIND CONSOLIDATION IN BANKING SECTOR
6. CHALLENGES AND OPPORTUNITIES IN INDIAN BANKING SECTOR
7. RESEARCH
8. FINDINGS
9. CONCLUSION
10. FUTURE OF MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTOR
11. BIBLIOGRAPHY

THANK YOU