Overview

Original Research

EFFECT OF MERGER ON THE PERFORMANCE OF PUBLIC SECTOR BANKS IN INDIA

ARCHANA SHARMA 1, S S MAHAPATRA 2, and ABHIJIT DUTTA 3.

Vol 18, No 11 ( 2023 )   |  DOI: 10.5281/zenodo.10183867   |   Author Affiliation: Senior Research Fellow, Department of Commerce, Sikkim University, Gangtok, Sikkim, India 1; Professor, Department of Commerce, Sikkim University, Gangtok, Sikkim, India 2,3.   |   Licensing: CC 4.0   |   Pg no: 743-755   |   Published on: 21-11-2023

Abstract

India has the potential to emerge as a prominent global financial center, with the banking industry playing a crucial role in enabling this transition. Following the implementation of liberalization policies, the industry has witnessed a substantial increase in the occurrence of mergers and acquisitions within the country. In order to generate value, mergers and acquisitions must result in enhanced financial performance for the merged entities. The objective of this study is to examine whether there has been a discernible enhancement in the CAMEL components of the banks under study following the merger. This study examines banks that have retained their identities subsequent to a merger instigated by the government of India. The merger in question was a component of the effort that was officially declared on August 30, 2019, and subsequently executed on April 1, 2020. The financial institutions under investigation in this research are Punjab National Bank and Canara Bank. The research indicates that there has been no significant improvement in the performance of banks under study subsequent to the merger.

Keywords

Merger, Public Sector Banks, Performance, CAMEL Framework.