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Post-Merger Financial Performance of Indian Banks:Camel Approach


Affiliations
1 Assistant Professor, Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, Nagpur, Maharashtra, India
2 Associate Professor, Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, Nagpur, Maharashtra, India
     

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The fact that India could well be the next financial hub of the globe, and the fact that the banking sector will play a major role in facilitating this transformation, served as the motivation for the study. Post liberalisation, the sector has seen a lot of mergers and acquisitions in the country. However, to add value, M&A must lead to improved financial performance of the merged entity. This research paper analyzes the post-merger financial performance of private and public sector banks, and also compares the same. The study reveals that, individually, private and public sector banks have shown post-merger improvement in financial performance with respect to a few parameters of the CAMEL model. However, overall there is no statistically significant improvement in the financial performance of the banks, post-merger. Also, there is no significant difference when the post-merger financial performance of private sector banks is compared to that of public sector banks.

Keywords

Merger and Acquisition, Post-Merger Financial Performance, Private Sector Banks, Public Sector Banks, CAMEL Model, Ratio Analysis.

JEL Classification: G21, G34.

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  • Post-Merger Financial Performance of Indian Banks:Camel Approach

Abstract Views: 235  |  PDF Views: 0

Authors

Vandana Gandhi
Assistant Professor, Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, Nagpur, Maharashtra, India
Prashant Chhajer
Associate Professor, Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, Nagpur, Maharashtra, India
Vishal Mehta
Assistant Professor, Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, Nagpur, Maharashtra, India

Abstract


The fact that India could well be the next financial hub of the globe, and the fact that the banking sector will play a major role in facilitating this transformation, served as the motivation for the study. Post liberalisation, the sector has seen a lot of mergers and acquisitions in the country. However, to add value, M&A must lead to improved financial performance of the merged entity. This research paper analyzes the post-merger financial performance of private and public sector banks, and also compares the same. The study reveals that, individually, private and public sector banks have shown post-merger improvement in financial performance with respect to a few parameters of the CAMEL model. However, overall there is no statistically significant improvement in the financial performance of the banks, post-merger. Also, there is no significant difference when the post-merger financial performance of private sector banks is compared to that of public sector banks.

Keywords


Merger and Acquisition, Post-Merger Financial Performance, Private Sector Banks, Public Sector Banks, CAMEL Model, Ratio Analysis.

JEL Classification: G21, G34.