Objectives of the Study
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. Data are
also collected from the Bombay Stock Exchange, National Stock Exchange, Securities
and Exchange Board of India and Money Control for the study.
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:
1. H0
(Null Hypothesis) – There is no significant difference between the pre and post
merger Operating Profit Margin