FINANCIAL PERFORMANCE OF SELECT BANKS IN INDIA FOR PRE & POST MERGER PERIOD - A STUDY

Resources are scarcity and desires are unlimited. Banks established for the welfare of people and country along with the principals making money with money business. So many banks are compete with each other to create a competition but digitalization, Permanent Account number restrict the unfair usage of banking activities by the business and people, so the customer base of banking industry are reduced, and due to the payment Banks and E-wallet they further struggling to manage the business. Innovation and automation of established bank forced the small banks to merger with those banks. In this study examine the Pre and Post financial performances of 9 leading banks Merger deal from the 2004 to 2010. The key financial Ratios such as profitability, Liquidity and Capital adequacy Ratio were employed to examine the impact of merger on their financial performance. The study reveals overall merger performance denote that the key Profitability Ratios, Liquidity Ratio and Capital adequacy Ratio are improved on post-merger period compare with the Pre-Merger Period. Banks are deals cash or easy encashment of cash so the quick ratio is increased and it statistically significant, as well as the Return on Capital employed may impact due to Non-performing assets and Government schemes. So the merger is the wise tactical decision to the Banking industry.