Financial Ratio Analysis to Assess the Merger of State Bank of India and Associate Banks

In this study, the financial performance of State Bank of India (SBI) after the merger (2017) with its associate banks and Bhartiya Mahila Bank has been analyzed. The financial statements of SBI for five years (2015-19) were used to calculate 19 financial ratios and comment on the merger. The study also briefly discusses the issue of non-performing assets (NPAs) for the combined entity. Ratio analysis is frequently employed by stakeholders and potential investors in financial decision processes. The results of this study show that the performance of SBI in terms of profitability, liquidity and return on investments has been satisfactory before the merger came into effect, however, the condition has been unfavorable in the initial years following the merger.