Final Project.....

“AN ANALYSIS OF MERGERS AND ACQUISITION OF COMMERCIAL
BANKS IN INDIA: A STUDY WITH REFERENCE TO SELECTED

BANKS”
A Thesis Submitted in Partial Fulfilment of the Requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
NETRAVATHI. U
R21MK134
REVA BUSINESS SCHOOL
REVA UNIVERSITY
September 2023
DECLARATION OF ORIGINALITY
I hereby declare that the work which is being presented in the thesis entitled “AN ANALYSIS OF
MERGERS AND ACQUISITION OF COMMERCIAL BANKS IN INDIA: A STUDY
WITH REFERENCE TO SELECTED BANKS “has been solely authored by me. It presents
the result of my independent investigation/research under the supervision of Dr. Lokanadha Reddy
Associate Professor. To the best of my knowledge, it is an original work, both in terms of research
content and narrative, and has not been submitted or accepted elsewhere, in part or in full, for the
award of any degree, diploma, fellowship, associateship or similar title of any university or
institution. I also declare that any data stated in my thesis has not been misrepresented. All the
principles of academic honesty and integrity have been followed. I fully understand that if the
thesis is found to be unoriginal, fabricated, or plagiarized, the Institute reserves the right to
withdraw the thesis from its archive and revoke the associated Degree conferred. Additionally, the
Institute also reserves the right to appraise all concerned sections of society of the matter for their
information and necessary action. If accepted, I hereby consent for my thesis to be available online
in the Institute's Open Access repository, inter-library loan and the title & abstract to be made
available to be made available to outside organizations.
Signature
NETRAVATHI. U
SRN: R21MK134
PROGRAM: MBA
REVA Business School,
REVA University
Bengaluru, Karnataka Date:
i
CERTIFICATE OF SUPERVISOR
This is to certify that the thesis entitled “AN ANALYSIS OF MERGERS AND ACQUISITION
OF COMMERCIAL BANKS IN INDIA: A STUDY WITH REFERENCE TO SELECTED
BANKS “submitted by NETRAVATHI. U, (R21MK134) for the award of the degree of Master
of Business Administration of REVA University, is a record of bonafide research work carried out
under my guidance and supervision. To the best of my knowledge and belief, the work presented
in this thesis is original and has not been submitted, either in part or full, for the award of any other
degree, diploma, fellowship, associate or similar title of any university or institution.
In my opinion, the thesis has reached the standard fulfilling the requirements of the regulations
relating to the Degree.
Signature of the Supervisor.
Dr. LOKANADHA REDDY

REVA Business School
REVA University
Bengaluru, Karnataka
Date:
ii
Certificate
This thesis was prepared under the direction of the candidate’s thesis supervisor, Dr. Lokanadha
Reddy. It was submitted to REVA Business School and was accepted in partial fulfilment the
requirements for the degree of Master of Business Administration, REVA University.
Dr. Shubha A,
Dean,
REVA Business School
iii
TABLE OF CONTENTS
Chapter Description Page no
Chapter - I Introduction 01-12

Chapter – II Literature Review 13-17
Chapter – III Research Methodology 18-20
3.1 Objective of the research 18
3.2 Statement of the Problems 18
3.3 Need for the study 18

3.4 Scope of the study 19
3.5 Limitation of the Research Study 19
3.6 Tools of Data collection 19
3.7 Framework of Analysis 19
3.8 Data Collection Methods 20
3.8.1 Primary Data 20
3.8.2 Secondary Data 20
3.9 Sample Design 20
3.9.1 Sample Size 20
3.9.2 Sampling Technique 20
Chapter IV Results and Discussion 21-45
Chapter V Summary and Conclusion 46-50
iv
LIST OF TABLES
CONTENT TABLE NO
CURRENT RATIO OF PRE AND POST MERGER 4.1.1
CORRELATION OF CURRENT RATIO 4.1.2

REGRESSION OF CURRENT RATIO 4.1.3
QUICK RATIO OF PRE AND POST MERGER 4.2.1
CORRELATION OF QUICK RATIO 4.2.2.
REGRESSION OF QUICK RATIO 4.2.3
DEBT TO EQUITY OF PRE AND POST MERGER 4.3.1
CORRELATION OF DEBT TO EQUITY 4.3.2
REGRESSION OF DEBT TO EQUITY 4.3.3
RETURN ON EQUITY OF PRE AND POST MERGER 4.4.1
CORRELATION OF RETURN ON EQUITY 4.4.2
REGRESSION RETURN ON EQUITY 4.4.3
RETURN ON ASSET OF PRE AND POST MERGER 4.5.1
CORRELATION RETURN ON ASSET 4.5.2
REGRESSION ON RETURN ON ASSET 4.5.3
PRICEEARNING RATIO OF PRE AND POST MERGER 4.6.1
CORRELATION ON PRICEEARNING RATIO 4.6.2
REGRESSION ON PRICE EARNING RATIO 4.6.3
LEVERAGED RATIO OF PRE AND POST MERGER 4.7.1
CORRELATION ON LEVERAGED RATIO 4.7.2
REGRESSION ON LEVERAGED RATIO 4.7.3
v
LIST OF FIGURES
CONTENT FIGURE NO.

GRAPH ON CURRENT RATIO 4.1
GRAPH ON QUICK RATO 4.2
GRAPH ON DEBT TO EQUTIY RATIO 4.3
GRAPH ON RETURN ON EQUITY 4.4
GRAPH ON RETURN ON ASSET 4.5
GRAPH ON PRICE EARNING RATIO 4.6
GRAPH ON LEVERAGED RATIO 4.7
vi
ABSTRACT
Mergers and acquisitions (M&A) have become prevalent in the Indian banking sector, serving as
a strategic tool to enhance competitiveness, synergize operations, and foster growth. This study
aims to provide a comprehensive analysis of M&A activities in the Indian commercial banking
industry, with a focus on identifying the factors that make banks an attractive target for
consolidation. This study gives light on the motivations behind recent M&A transactions and their
prospective opportunities including economies of scale, expanded market reach, stronger
technology capabilities, and improved risk management. It also examines the challenges that come
with M&A, including as post-merger performance, cultural integration, and legal compliance. This
study offers helpful advice for banks considering M&A as a development strategy, highlighting
the significance of careful due diligence, efficient integration planning, and stakeholder
engagement. It does this by drawing on actual data and industry perspectives. Banks can make
wise decisions to take advantage of the opportunities and reduce the risks involved with such
transformative transactions by having a solid knowledge of the dynamics of M&A in the Indian
banking market.
Keywords: mergers and acquisitions, commercial banks, Indian banking sector, consolidation,
opportunities, challenges.
vii
CHAPTER. 1
INTRODUCTION TO MERGER AND

ACQUISITION
Introduction
Mergers and acquisitions (M&A) are important strategic actions that reshape the commercial
environment by enabling corporate consolidation, growth, and restructuring. As organizations look
to accomplish a variety of goals, including gaining market share, accessing new technologies or
markets, boosting competitiveness, and achieving economies of scale, M&A transactions have
become more common in today's globalized economy. In contrast to acquisitions, which involve
one company buying another, mergers take place when two or more businesses come together to
form a new entity. Both M&A deals have the potential to boost growth, create synergies, and boost
shareholder value. They are complex endeavor’s that demand careful planning, execution, and
post-merger integration but also come with inherent risks and difficulties.
What is merger
A merger is an agreement that joins two existing companies to form a single new company.
Mergers are frequently done to increase market share, expand into new markets, or diversify a
company's clientele. These actions are all being taken to boost value and appease shareholders.
The 1856 Companies Act governs and addresses mergers.
Finding the right partner, deciding on the terms of payment, and finally combining the two
businesses to form a new company are all considered mergers.
Types of mergers
• Mergers of conglomerates
when multiple companies collaborate on unrelated projects. After being hired, the business
might work in different industries or in different countries. Two different companies are
involved in a pure conglomerate merger. When companies that conduct unrelated business
activities band together with the goal of enhancing their product or market offerings, mixed
conglomerates are created.
1
• Congeneric Mergers
Congeneric Merger is also known as Generic Product Extension Merger. when two or more
companies are vying for the same market or industry and their interests in things like
manufacturing, marketing, technology, and R&D overlap. A product is defined as a new
product line from one company that is added to an existing product line from another
company.
• Market Expansion Partnerships
when two companies selling the same goods do so in different markets. By gaining access
to a bigger market, companies that take part in market extension mergers hope to increase
the size of their clientele.
• Horizontal Mergers
when at least two companies in the same industries as the two competitors are doing
business and providing the same products or services. The goal is to expand the business
to have a larger market share and greater economies of scale because competition among
fewer businesses tends to be fiercer.
• Vertical merger
When two companies that produce parts or services for a single finished product merge,
this is known as a vertical merger. When two companies that are involved in different parts
of the same industry's supply chain combine their operations, this is referred to as vertical
merger. The goals are to increase the synergies created by cost-cutting and resulting from
a merger with one or more supply companies
2
Causes of Bank Merger
• The burden of accumulating bad loans over time is a significant driver of bank mergers; by
eliminating unnecessary overlaps in infrastructure and operations, stronger banks are
produced on a global scale.
• Through the use of economies of scale, costs can be reduced, which has always been the
main goal of any consolidation drive.
• They aimed to establish next-generation banks with a significant national presence, a global
reach, and an improved ability to expand credit to the various important economic sectors.
• They also sought to increase organizational effectiveness, accountability, and governance,
as well as to make effective monitoring easier.
Advantages of Bank Merger
• The acquiring banks would be able to offer sizeable loan amounts due to their high capital
bases. This merger will streamline the implementation of policy and enhance systemic
control at RBI.
• It will be simple to break into the market.
• The development of technology is a possibility.
• The need for recapitalization of the government will decrease.
• The merger has assisted in bringing down operating expenses.
• There has been an improvement in professionalism.
• It helps to improve risk management.
• Regional banks that are restricted by geography can expand their service areas with the
help of mergers.
• It provides a higher efficiency ratio for business and banking operations, which is
beneficial for the country's economy.
• Using technology to improve the delivery of services. The performance of banks will be
monitored by the RBI, especially with regard to loans or NPAs (Nonperforming Assets).
• In addition to the customary loans and deposits, customers will have access to a wide range
of products like mutual funds and insurance.
3
• If a bank's NPA percentage exceeds the standards set forth, it may be asked to merge with
a larger bank so that the combined capital of the two banks will be higher, thereby lowering
the NPA percentage.
Demerits of A Bank Merger
• The burden of accumulating bad loans over time is a significant driver of bank mergers; by
eliminating unnecessary overlaps in infrastructure and operations, stronger banks are
produced on a global scale.
• Through the use of economies of scale, costs can be reduced, which has always been the
main goal of any consolidation drive.
• They aimed to establish next-generation banks with a significant national presence, a global
reach, and an improved ability to expand credit to the various important economic sectors.
• They also sought to increase organizational effectiveness, accountability, and governance,

as well as to make effective monitoring easier.
• It too many mergers of banks and there by the customers that will have the less choice to
bank
4
AN OVERVIEW OF INDIAN BANKING SECTOR
In the modern economy, banks cannot be undervalued. The nation's economic development
depends heavily on the banking sector. The banking sector industrial & agricultural issues is a
type of financial institution that handles numerous tasks like taking deposits and lending money
to clients. The manufacturing industry in India is giving way to the emerging service industry,
and this paradigm shift will have an impact on the global banking industry as well. India's
banking industry as a whole is changing. Indian banks have consistently offered convincing
proof of their capacity to change and grow into a strong organization. The banking sector has
undergone a significant amount of consolidation recently. The Banking Companies Acts of
1970 and 1980 (Acquisition and Transfer of Securities undertaking) allow the Central
Government and the Reserve Bank of India (RBI) to create a plan for the merger of any
nationalized bank with another nationalized bank or sector of the banking industry. The Indian
banking system has a number of outstanding loans from the previous three decades to its credit.
What distinguishes it the most is its broad scope. India's banking system extends even to the
nation's most rural regions. Among the main forces fostering India's development Even the
remotest regions of India now have access to the banking system. In the modern economy,
banks cannot be undervalued. The nation's economic development depends heavily on the
banking sector. The banking sector industrial & agricultural issues is a type of financial
institution that handles numerous tasks like taking deposits and lending money to clients. The
manufacturing industry in India is giving way to the emerging service industry, and this
paradigm shift will have an impact on the global banking industry as well. India's banking
industry as a whole is changing. Indian banks have consistently offered convincing proof of
their capacity to change and grow into a strong organization. The banking sector has undergone
a significant amount of consolidation recently.. The change that should be occurring right now
is The current transformation should be viewed as an opportunity to create a sound, strong, and
vibrant Indian banking system that is able to carry out its duties successfully and independently
without placing additional burdens on the government.
5
COMPANY PROFILE
1. History of Bank of Baroda, Vijaya Bank and Dena Bank (2019)
History Bank of Baroda
• The Bank of Baroda was established as a private bank on July 20, 1908, by Maharaja
Sayajirao Gaekwad III, the Maharaja of Baroda.
• The Bank of Baroda is headquartered in Mumbai, Maharashtra, while BOB is
headquartered in Vadodara, formerly Baroda, in the state of Gujarat.
• In 1910, the Bank of Baroda opened a branch in Ahmadabad City.
• On July 19, 1969, the Indian government nationalized Bank of Baroda along with the other
13 significant Indian commercial banks.
. History of Vijaya Bank
• The Vijaya Bank was established on October 23, 1931, by late Shri A.B. Shetty of
Bengaluru, Karnataka, and other enterprising farmers.
• On April 15, the Vijaya Bank underwent nationalization. Its main office is in Bengaluru,
Karnataka.
• In 1958, the bank was classified as a scheduled bank;
• Between 1969 and 1968, it merged with nine other smaller banks, gradually expanding to
become a sizable India Bank.
History of Dena Bank
• Dena Bank was established on May 26, 1938, by Devkaran Nanjee's family under the name
Devkaran Nanjee Banking Company Ltd. In December 1939,
• In order to prepare for going public, Dena Bank changed its name to Dena (Devkaran
Nanjee) Bank.
• Dena Bank Ltd. was nationalized and transformed into a Public Sector Bank in July 1969
along with 13 other important banks.
6
About the merger
Three public sector banks, Dena Bank, Vijay Bank, and Bank of Baroda, will be merged under the
Narendra Modi administration to form a new financial institution with assets exceeding Rs 14 lakh
crore. With this merger, the State Bank of India and HDFC Bank will be joined to form the third-
largest lender in India. On January 2, 2019, the Bank of Baroda and Vijaya Bank merger was given
the go-ahead by the government. For every 1000 shares they own, Dena Bank and Vijaya Bank
shareholders will receive 110 and 402 Bank of Baroda equity shares, respectively. The government
will give the merged entity Rs 5,042 crore to strengthen its financial position.
The merger ranks as one of the largest in terms of branch network, and Dena Bank is one of the
five PSU banks subject to the Reserve Bank of India's prompt corrective action framework. Except
for profitability, the key credit metrics of the combined company are anticipated to closely
resemble those of Bank of Baroda, according to a Moody's report. The non-performing assets
(NPAs) that Bank of Baroda inherited from the other two banks, however, could have a negative
impact on its profitability.
The bank has set aside Rs 7,000 crore as a capital infusion in anticipation of the merger and is
actively working to lower its Non-Performing Assets (NPA). The gross NPA ratios for Bank of
Baroda, Vijaya Bank, and Dena Bank were 12.4%, 6.9%, and 22%, respectively, at the time the
merger proposal was made. After the merger, Bank of Baroda's total revenue is anticipated to
exceed Rs 15 trillion.
7
2. HISTORY OF PUNJAB NATIONAL BANK, ORIENTAL BANK OF
COMMERCE & UNITED BANK OF INDIA
History of Punjab National Bank
• On May 19, 1894, the Punjab National Bank was founded. It is an Indian company that
offers financial and banking services abroad.
• One of the top players in the sector is the state-owned Punjab National Bank, which has
over 80 million clients, 6937 branches, and 10681 abms spread across 764 cities.
• According to the RBI, Punjab National Bank had the most instances of loan fraud out of
all state-run banks in India.
History of Oriental Bank of Commerce
• Rai Bahadur Lala On February 19, 1943, in Lahore, Sohan Lal, the bank's first chairman,
established the Oriental Bank of Commerce.
• On April 15, 1980, it became a national holiday.
•
• The bank had to close a recently opened branch in Pakistan and relocate its registered office
from Lahore to Amritsar.
• The bank's network spans all of India with 530 branches and 505 abms, and 490 of those
branches offer centralized banking services.
History of United Bank of India
• United Bank of India was established in 1959.

• The first branch was opened in Karachi; Union Bank and United Bank were merged.
• In addition to its more than 1300 domestic branches, it has 15 abroad.
• United Bank of India has a 56-year track record of success.
• United Bank of India is the owner of assets worth more than 300 billion rupees.
8
About the merger
In order to solidify its position as India's second-largest lender, trailing only the State Bank of
India (SBI), Punjab National Bank (PNB) is prepared to complete the acquisition of Oriental Bank
of Commerce (OBC) and United Bank of India (UBI) on April 1, 2020. PNB will receive the
largest recapitalization infusion as part of this merger, amounting to Rs 16,000 crore, with Union
Bank coming in right behind at Rs 11,700 crore. With seamless services across all branches and
digital platforms, including mobile and internet banking, this merger is expected to create the
globally competitive financial institution known as PNB 2.0.
With more than 11,000 branches, more than 13,000 abms, over 1 lakh employees, and a sizable
business portfolio worth more than Rs 188 lakh crore, the combined entity will have a larger
geographic reach. The expanded geographic reach has encouraged SS Mallikarjun Rao, the
managing director and CEO of Punjab National Bank, to be upbeat about it because he thinks it
will lead to more effective and efficient customer service.
PNB has taken proactive steps to address customer concerns and assist them in choosing the best
products and services in advance of the merger. To ensure a secure and safe banking experience,
they have also put in place a strong framework for risk governance. Along with these
modifications, PNB unveiled a new logo for the merged company that combines distinctive
features from each of the three public sector banks involved.
9
3. HISTORY OF CANARA BANK & SYNDICATE BANK (2022)
Canara Bank
• In Mangalore, Canara Bank was established by Subba Rao Pai in 1906 when it was still
known as the Canara Hindu Parliament Fund.
• In 1910, the institution's name was changed to Canara Bank.
• In 1969, this bank underwent nationalization.
• In 1979, Canara Bank opened its one thousandth location.
• Canara Bank was the first Indian bank to receive an ISO certificate for "Total Branch
Banking" for its Seshadripuram Branch in Bangalore in 1996.
Syndicate Bank
• Syndicate Bank, India's oldest and biggest commercial bank, was established in Udupi,
Karnataka, in 1925. Initially, the bank was known as Canara Industrial and Banking
Syndicate Ltd.
• created by one of the three visionaries, Shri Upendra Ananth Pai. Shri Vamankudva, an
engineer and businessman, along with Dr. T M A Pai, a physician, wanted to provide
financial support for the neighbourhood weavers. On July 19, 1969, the Indian government
nationalized Syndicate Bank.
• The Indian university town of Manipal served as the location of this bank's headquarters.
• The bank's main objective was to support the local weavers financially. 13 significant
commercial banks operate in India.
AFTER CANARA Bank and SYNDICATE BANK MERGER
The merger of Syndicate Bank and Canara Bank created India's fourth-largest public sector bank
on April 1, 2020. With the acquisition of Syndicate Bank, Canara Bank issued 158 shares to
shareholders for every 1000 Canara Bank shares. The combined company will have 91,685
employees and 10,342 branches and 12,829 abms. Due to network overlap, the merger will
increase the banking industry's ability to reach a wider audience and promote financial inclusion.
It will also reduce operating costs and enable seamless integration because both organizations'
work cultures are the same.
10
4. HISTORY OF UNION BANK OF INDIA, ANDHRA BANK & CORPORATION
BANK
Union Bank of India
• Mahatma Gandhi inaugurated the Union Bank of India, which was founded on 11
November 1919 and has a limited company in Mumbai.
• Union Bank of India was the first to introduce abms in India.
Andhra Bank
• Andhra Bank, a public sector bank in India, was established on November 20, 1923.
• Dr. Bhogaraju Pattabhi Sitaramayya, a well-known freedom fighter and multi-talented
genius, founded the Andhra Bank.
• It has more than 1100 automated teller machines, 15 extension counters, and more than
1900 branches. 25 states and three union territories are where it is active.
• Andhra Bank is based in Hyderabad, India.In 1981, Andhra Bank led the way in bringing
credit cards to the nation.
Corporation Bank
• Corporation Bank was established in 1906 in the small South Indian town of Udupi.
• It was nationalized in 1980 and went public a decade later.Corporation Bank has a solid
track record of making a profit since its inception.
• A 200% a dividend, the largest dividend ever declared, and an extensive history of
uninterrupted dividend payments dating back to the fiscal years 2010–2011.
11
About the Merger
The merger of Andhra Bank and Corporation Bank into Union Bank of India, creating the fifth-
largest public sector bank in the nation, on April 1, 2020, fundamentally changed the Indian
banking landscape. Following discussions with the Reserve Bank of India, this merger was carried
out with the approval of the central government in accordance with Section 9 of the Banking
Companies Act of 1970/1980. The main goal of this merger is to build on the advantages and
histories of the individual banks while creating a cohesive and vibrant future. All of the staff,
clients, and locations of Andhra Bank and Corporation Bank have seamlessly been incorporated
into Union Bank of India as a result of this merger. The realization of cost and revenue synergies
totaling INR 2,500 crores over the next three years is one of the anticipated benefits of this
consolidation. Expanded access to branches, abms, digital services, and credit options are expected
to benefit customers, and the combined banks are expected to become a more resilient and
powerful financial institution.
Through their extensive network of 9,500 branches and 13,500 abms, these combined banks
provide a wide range of goods and services to a customer base of more than 120 million people,
promising increased convenience and strengthened financial stability.
12
CHAPTER-II
REVIEW OF LITERATURE
Mr. K NAUPAL REDDY Mr. Dr. J. Pardhasaradhi (2023)- The passage was taken from an
article that appeared in the January 2023 issue of the International Journal of Creative Research
Thoughts (IJCRT). It discusses a study that compared Union Bank of India's and Andhra Bank's
financial results before and after their merger, which took place in April 2020. The article
emphasizes the merger's success while demonstrating how the banks have embraced cutting-edge
technology to enhance services. It also highlights the advantages of mergers, such as resource
sharing, business growth, and knowledge exchange. The study used statistical tools for data
analysis and interpretation and secondary data analysis, which was gathered from reputable
sources.
Aggarwal and Garg (2022) had examined the effects of mergers on profitability using secondary
data from 68 mergers that occurred between the 2007 and 2012 fiscal years. Seven variables have
been used in the analysis along with tools like accounting-based numbers that fall into three
categories for solvency: profitability and liquidity. It is demonstrated by comparing performance
data for the past five years based on accounting to data for the five years following a merger.
Between the pre- and post-merger periods, this equivalent assessment is completed for a period of
three years. The analysis reveals that the merger significantly impacted the acquiring firm's
liquidity and profitability. Comparing in-service firms to manufacturing firms, the improvement
is greater in the post-merger period.
Dr. Chetan Kashyap (2021) - The study looks at Bank of Baroda as a case study for the merger
and acquisition process in the Indian banking industry. The study examines the reasons for the
merger, its difficulties, and its effects, including how it will affect business operations, customer
satisfaction, and stakeholder viewpoints. The study gives background information on the pre-
merger situation of the bank, the reasons for the merger, the merger process and integration,
financial performance, customer experience and service quality, stakeholder perspectives,
challenges, and lessons learned. The study is aware of some potential drawbacks, such as the
emphasis on a single case study and the inability to include all mergers and acquisitions that have
occurred in the Indian banking industry. For upcoming M&A activities in the Indian banking
sector, the study does provide insightful information and valuable lessons
13
Dr. Kamini Kumari (2021)- The excerpt talks about banking industry mergers and acquisitions
(M&As) in the context of the State Bank of India (SBI) and its associate banks merging. In order
to increase efficiency and viability, it emphasizes the significance of consolidation and
restructuring in the Indian banking sector. The article discusses the advantages and difficulties of
such mergers, including problems with employees and modifications to working conditions.
Additionally, it makes reference to recent studies that examine the financial effects of M&As on
Indian banks.
Ishwarya J (2019)- The State Bank of India (SBI) and its affiliates merger is the main topic of
Ishwarya J's research paper on mergers and acquisitions (M&A) in the Indian banking industry. It
goes over the historical background, the motivations behind M&A, and briefly reviews earlier
research on their effects. The analysis of banking sector reforms, pre- and post-merger
performance, and M&A trends in the study is based on secondary data. Differences in accounting
methodologies as well as a lack of in-depth analysis are limitations.
Krishnaveni and Teja (2019)- have conducted empirical research on mergers and discovered that
M&A in financial services and banking have had a positive impact on the shareholders of both
ING VYSYA BANK (the target bank) and KOTAK Mahindra Bank (the bidder bank). The
perception of the merger between the target, UNICHEM LABS LTD, and the bidder, TOORENT
PHARMA, has also been examined. In the third instance, a merger between the steel and oil and
gas industries was examined. Their analysis makes it clear that investors may have differing
opinions about mergers and acquisitions.
Reddy et al (2019) had found that ideally, M&A declarations do not generate worth for the
organizations in either Indian or Chinese business economies. The researchers have created a mean
model for Chinese firms and Indian firms to study the impact of merger announcement on firm
market value in the economy. The authors have used confidence levels 90 percent, 95 percent and
99 percent to know the confidence interval for the mean value of the market of firms in respective
economies.
14
DR RAVI (2019) - It clarifies the importance of mergers and acquisitions for the consolidation of
the Indian banking sector. It draws attention to the necessity of cutting expenses and increasing
revenue in order to achieve this consolidation. The central government's role in developing policies
that will aid Indian banking expansion is also emphasized. the voluntary actions taken by banks to
grow and merge, such as the union of Times Bank and HDFC Bank. Indian banks are still seen as
being small by international standards, which emphasizes the advantages of expanding in size. The
text also emphasizes the importance of consistency, abiding by the law, and creating universal
banks through mergers and acquisitions. The conclusion of the article claims that mergers and
acquisitions are a useful tool for INDIAN Banks
Patel (2018) had described the methodology to evaluate the performance by using financial
statements in post-merger period. Vertical merger is a type of strategy of non-competing firms
where one’s outcome product is essential component of another firm. Hence such combination
(merger) can be implemented when two units or firms perform their business in different sector.
For example, AIRTEL in telecom industry had merged with INFRATEL Company which provides
network infrastructure. Another type of merger is Horizontal merger where tow units or entities
belong to the same industry and it happened between Union Bank and Andhra bank where the
same business activity of each firm at the individual level. Third type of merger known as
‘Accretive Merger’ takes place when a business with price-to-earnings ratio buys another business
with low price-to-earnings ratio. A conglomerate merger takes place when there is no commercial
outcome is expected with the merger.
Soni and Jain (2013) demonstrates how the financial ratios return on equity, return on capital
employed, operating profit margin, gross profit margin, and net profit margin compare banks
before and after a merger. This study illustrates the changes that the acquired firms have gone
through using financial metrics. The t-test was one of the tools used to test statistical significance
and the effect of mergers and acquisitions on bank performance. We can draw the conclusion that
the merger and acquisition event benefited the banks.
Madan Mohan Dutta and Dr. Suman Kumar (2012) - The analysis looks at trends in mergers
and acquisitions in Indian banks following liberalization. Focusing on the variables influencing
M&A activities and their effects on financial performance and efficiency, it examines patterns,
motivations, and results. The analysis also looks at financial effectiveness, challenges, and issues
15
like managing human resources, integrating technology, and adhering to regulations. The study is
aware of its shortcomings, including the use of historical data and the incapability to record real-
time M&A dynamics.
Sinha Pankaj & Gupta Sushant (2011) Pankaj Sinha and Sushant Gupta's study on mergers and
acquisitions (M&A) in the Indian financial services sector found that M&A activities positively
impact profitability, efficiency, and market valuation. The study analyzed financial performance
indicators of companies involved in M&A transactions, finding enhanced operational efficiency,
improved cost-to-income ratios, and a positive market valuation. Synergy creation was crucial in
M&A transactions, with successful integration yielding greater benefits. Regulatory and industry-
specific factors also influenced M&A outcomes. Stephen A. Rhoades' study found mixed
productivity effects from nine bank mergers, with some achieving higher output levels or more
revenue per unit of input. Factors influencing efficiency effects included the size of merging banks,
market competition, integration process, quality of management, and regulatory environment.
Mergers involving larger banks and those operating in less competitive markets yielded more
significant efficiency gains.
Anand Manoj & Singh Jagandeep (2008): studied how five Indian banks' declarations of merger
would affect the shareholders' bank. These mergers included the Times Bank joining HDFC Bank,
the Bank of Madurai joining ICICI Bank, ICICI Ltd joining ICICI Bank, Global Trust Bank joining
Oriental Bank of Commerce, and Bank of Punjab joining Centurion Bank. The wealth of the
shareholders was positively and significantly impacted by the announcement of the Bank's merger.
Manoj Anand and Jagandeep Singh (2008) The analysis looks at trends in mergers and
acquisitions in Indian banks following liberalization. Focusing on the variables influencing M&A
activities and their effects on financial performance and efficiency, it examines patterns,
motivations, and results. The analysis also looks at financial effectiveness, challenges, and issues
like managing human resources, integrating technology, and adhering to regulations. The study is
aware of its shortcomings, including the use of historical data and the incapability to record real-
time M&A dynamics. On both short term and long term goal
16
Stephen A. Rhoades (1997)- The study examines the efficiency effects of bank mergers through
nine case studies. It examines motivations, integration strategies, and the impact on efficiency,
focusing on cost efficiency, profitability, and productivity. The study considers factors like market
concentration, economies of scale, scope, and risk and stability. The efficiency effects of bank
mergers are mixed and highly dependent on factors. Successful mergers often involve banks with
complementary strengths, effective integration strategies, and proper operational challenges
management. The study emphasizes cultural integration, technological compatibility, and
adequate risk management practices for positive efficiency outcomes. However, the study
acknowledges potential risks, such as increased market concentration and reduced competition,
and calls for effective regulation and oversight to preserve a competitive and stable banking sector.
17
CHAPTER-III
RESEARCH METHODOLOGY
3.1 OBJECTIVE
• To examine the performance of all five merged banks before and after the merger.
• To assess the impact of M&A transactions on financial performance, market

competitiveness, and overall growth.
• To identify success factors and challenges associated with these transactions, such as
strategic alignment, effective post-merger integration planning, and risk management
practices.
3.2 STATEMENT OF THE PROBLEM
Recent years have seen a significant amount of mergers and acquisitions in the banking industry,
with new international players entering the market. Large businesses prosper in this difficult
environment. Due to bad loans, government banks have suffered sizable losses, which lenders are
unwilling to recover. The government has decided to merge banks through extensive economic
operations after consulting with the Reserve Bank of India (RBI). This merger seeks to enhance
staff utilization, lower non-performing assets (NPAs), and concentrate on effective resource
development. The purpose of the study is to shed more light on this choice.
3.3 NEED FOR STUDY
• By examining the impact on market concentration, competition, and customer experience,

it aids in the assessment of the effects of such transactions on market dynamics and
consumer welfare by policymakers and industry stakeholders.
• The study can identify elements like strategic alignment, cultural integration, efficient post-
merger integration planning, and risk management practices that result in successful M&A
outcomes by examining the detailed case studies of the four banks.
• It provides insights and lessons learned that can direct future merger and acquisition
strategies, assisting banks and industry participants in making informed decisions and
improving the overall outcomes of such transactions. By examining the successes and
challenges faced by the four banks, the study sheds light on their successes and failures.
18
3.4 SCOPE OF THE STUDY
• The study analyzes mergers and acquisitions in the Indian banking sector, focusing on
financial performance, operational efficiency, market concentration, customer
experience, stakeholder perspectives, regulatory framework, and future implications. It
contributes to understanding the dynamics and implications of these transactions,
offering valuable insights for industry practitioners, policymakers, and researchers.
3.5 LIMITATIONS
• Limited availability and quality of data may impact the analysis of M&A transactions.
• Time constraints may limit the scope and depth of the study.
• Findings and conclusions may be context-specific and not universally applicable.
• Interpretation bias and subjectivity can affect the objectivity of the study's findings
3.6 TOOLS AND TECHNIQUES USED
• Return on equity-ROE
• Return on asset -ROA
• Correlation & Regression
• Ratio analysis
3.7 FRAMEWORK OF ANLYSIS
analyzing mergers and acquisitions (M&A) in the Indian commercial banking sector requires a
well-structured framework that covers various critical dimensions. Firstly, understanding the
strategic objectives behind the M&A is essential to grasp the motivations and intended outcomes.
Financial performance plays a pivotal role, involving a detailed examination of key metrics such
as profitability, liquidity, and capital adequacy both before and after the merger. Evaluating
operational integration is crucial as it impacts the realization of cost synergies and efficient post-
merger operations. Additionally, assessing customer impact, regulatory compliance, market share
changes, and competition dynamics provides insight into the broader market consequences.
19
Shareholder value and risk management must also be considered to gauge the impact on investors
and risk exposure.
3.8 DATA COLLECTION METHODS:
3.8.1 PRIMARY DATA
No primary data has been collected for this research
3.8.2 SECONDARY DATA
Secondary data gathered from various articles, journals, manuals, company annual reports, and
websites. The method used to gather secondary data involves primarily borrowing from suitable
journals (related to merger and acquisition), web portals, and books.
3.9 SAMPLE DESIGN:

3.9.1 SAMPLE SIZE
➢ SYNDICATE BANK & CANARA BANK

➢ CORPORATION BANK, ANDHRA BANK, & UNION BANK OF INDIA
➢ BANK OF BARODA, VIJAYA BANK, DENA BANK,
➢ PUNJAB NATIONAL BANK, ORIENTAL BANK OF COMMERCE, & UNITED
BANK OF INDIA
3.9.2 SAMPLING TECHNIQUES
In this study we have used the simple random technique.
Period of the study
We have chosen the period from 2012-13 to 2022 based on the secondary data collection of the
merged bank as we want to compare what is happening in the commercial banking sector with
regards to mergers and acquisitions.
20
CHAPTER -IV
RESULTS AND DISCUSSION
DATA ANALYSIS
CURRENT RATIO
A fundamental financial metric called the current ratio is used to evaluate a company's short-
term liquidity and its capacity to pay short-term debts. For a number of reasons, this ratio is
important. By contrasting a company's current assets (such as cash, accounts receivable, and
inventory) with its current liabilities (such as short-term debts and upcoming payments), it
primarily sheds light on the financial health of the business. By doing this, it makes it easier for
creditors, investors, and management to determine whether a business has enough liquid assets
to pay off its immediate debts. A low current ratio may be a sign of financial instability and a
higher risk of defaulting on obligations, so it helps with risk assessment. On the other hand, a
high current ratio might point to excess liquidity that could be used more effectively. In the end,
the current ratio is a useful tool for decision-making that helps stakeholders make decisions
about lending, investing, and daily financial management.
CURRENT RATIO
TABLE 4.1.1 CURRENT RATIO OF PRE AND POST

MERGER
BANK NAME post-merger pre-merger
BANK OF BARODA 1.067741731 1.062760313
PUNJAB NATIONAL BANK 1.068247737 1.052484014
CANARA BANK 1.025860405 1.047585978
UNION BANK 1.057007209 1.047234745
(SOURCE: SECONDARY DATA)
21
FIGURE 4.1
current ratio
1.08
1.07
1.06
1.05
1.04
1.03
1.02
1.01
1
bob pnb cb ub
CURRENT RATIO post merger CURRENT RATIO pre merger
CORRELATION
TABLE 4.1.2 OF CORRELATION OF CURRENT RATIO

post-merger pre-merger
post-merger 1
pre-merger 0.608392108 1
REGRESSION
TABLE 4.1.3 REGRESSION OF CURRENT RATIO
Regression Statistics
Multiple R 0.608392108
R Square 0.370140957
Adjusted R Square 0.055211436
Standard Error 0.019364347
Observations 4
22
ANOVA
Significance
df SS MS F F
Regression 1 0.00044072 0.000441 1.175314 0.391608
Residual 2 0.00074996 0.000375 `
Total 3 0.00119067
Standard Upper Lower Upper

Coefficients Error t Stat P-value Lower 95% 95% 95.0% 95.0%
-
Intercept -0.70791114 1.62588881 -0.4354 0.705756 -7.70355 6.287724 7.70355 6.287724
-
pre-merger 1.674677603 1.54473621 1.084119 0.391608 -4.97179 8.321141 4.97179 8.321141
Interpretation
The information provided offers insightful information about the financial health of four
significant banks: Bank of Baroda, Punjab National Bank, Canara Bank, and Union Bank. It has
been determined that two crucial performance metrics, "post-merger" and "pre-merger," will be
used to evaluate the effects of mergers on these financial institutions. Notably, there is a strong
correlation between post-merger and pre-merger performance (r = 0.6084), which suggests that
banks with better pre-merger performance typically displayed better post-merger results. This
implies that the success of the bank following the merger may be positively impacted by a strong
foundation before the merger.
Regression analysis, on the other hand, makes a more thorough effort to model this relationship
and provides a nuanced viewpoint. The statistical significance of the regression model is in doubt,
but the positive correlation is still obvious. With an adjusted R-squared value of 0.0552 and an R-
23
squared value of 0.3701, the model only partially accounts for the variation in post-merger
performance. This suggests that although there may be a relationship, it may not be a reliable
indicator of how these particular banks will fare after a merger. The non-significant p-value from
the ANOVA emphasizes the fuzziness of pre-merger performance's predictive ability even more.
In conclusion, the data show that pre-merger and post-merger performance are positively
correlated, but the regression analysis shows that this relationship may not be statistically
significant. It implies that when assessing the post-merger success of these banks, factors other
than pre-merger performance should be taken into account.
24
QUICK RATIO
It is an essential tool for financial assessment. It provides important information about a bank's
capacity to pay its short-term debts without relying on the sale of inventory. Analyzing the quick
ratio during the pre-merger phase aids in understanding the bank's liquidity position and its ability
to meet urgent financial needs. It assists in assessing how the merger affected the bank's liquidity
after the merger, highlighting whether the consolidation has increased or decreased the bank's
capacity to pay short-term debts. Investors, regulators, and management must evaluate this
comparison in order to determine how well the merger will maintain or improve the bank's
financial stability. Stakeholders can make knowledgeable decisions about investment, lending, and
risk management tactics by examining the quick ratio in both phases, which will help the overall
health and sustainability of the banks
QUICK RATIO
TABLE 4.2.1 QUICK RATIO OF PRE AND POST MERGER
BANK NAME POST MERGER PRE-MERGER
BANK OF BARODA 1.06656482 0.941444138
PUNJAB NATIONAL
BANK 1.068247737 1.052484014
CANARA BANK 1.025860405 1.047585978
UNION BANK 1.057007209 1.047234745
25
QUICK RATIO
1.1
1.05
0.95
0.9
0.85
bob pnb cb un
QUICK RATIO POST MERGER QUICK RATIO PRE MERGER
FIGURE 4.2
CORRELATION
TABLE 4.2.2 CORRELATION OF QUICK RATIO

POST MERGER PRE-MERGER
POST MERGER 1
PRE-MERGER -0.38435303 1
SOURCE: SECONDARY DATA
REGRESSION
TABLE 4.2.2 REGRESSION OF QUICK RATIO
R Square 0.147727255
Adjusted R Square -0.27840912
Observations 4
26
ANOVA
Significa
df SS MS F nce F
Regressio 0.00017 0.0001 0.3466 0.615646
n 1 152 72 67 966
0.00098 0.0004
Residual 2 953 95
0.00116
Total 3 105
Coefficie Standar P- Lower Upper Lower Upper

nts d Error t Stat value 95% 95% 95.0% 95.0%
1.197863 0.24388 4.9116 0.0390 0.148530 2.247197 0.148530 2.247197
Intercept 642 058 81 4 205 079 205 079
- - - -
PRE- 0.140330 0.23833 0.5887 0.6156 1.165819 0.885158 1.165819 0.885158
MERGER 07 878 8 47 077 947 077 947
INTERPRETATION
Along with correlation and regression analyses, the data presented relates to the Quick Ratio of
four different banks both before and after a merger. The Quick Ratio, also referred to as the Acid-
Test Ratio, gauges a bank's capacity to fulfill its immediate obligations with the help of its most
liquid assets, excluding inventory.
Following the merger, the Quick Ratio of Bank of Baroda increased from 0.9414 to 1.0666,
indicating improved short-term liquidity. Following the merger, Punjab National Bank's Quick
Ratio increased from 1.0525 to 1.0682, indicating a stronger ability to meet immediate obligations.
The Quick Ratio of Canara Bank decreased from 1.0476 to 1.0259, indicating a slight decline in
liquidity following the merger.
27
Following the merger, Union Bank's Quick Ratio rose from 1.0472 to 1.0570, indicating improved
short-term liquidity.
The correlation analysis reveals a weakly inverse relationship between the banks' pre- and post-
merger quick ratios, with a negative correlation coefficient of -0.3844 between them. With a high
p-value of 0.6156, the regression analysis reveals that this relationship is not statistically
significant, proving that pre-merger Quick Ratios cannot be accurately predicted by post-merger
ratios. In conclusion, these banks' Quick Ratios show a mixed picture of their post-merger short-
term liquidity, with some banks seeing improvements and others seeing slight declines. The
regression analysis does not support a significant correlation between pre-merger and post-merger
Quick Ratios, despite the correlation's weak inverse association.
28
DEBT EQUITY RATIO
A crucial financial metric used to evaluate a company's financial structure and risk profile is the
debt equity ratio, which is calculated both before and after a merger. It calculates how much of a
company's funding is made up of debt as opposed to equity. Calculating this ratio during the pre-
merger stage offers important insights into the financial stability and risk appetite of the involved
companies. In the event of an economic downturn or financial stress, a higher pre-merger Debt
Equity Ratio suggests higher financial leverage and, as a result, greater risk.
To monitor the effect of the merger on the capital structure of the combined entity after the merger,
it is essential to evaluate the Debt Equity Ratio. If the post-merger ratio significantly rises, it could
mean that the combined company has increased its debt load to pay for the merger potentially
increasing its financial risk. Conversely, a lower post merger ratio could signify a more
conservative financial approach or successful deleveraging efforts.
DEBT EQUITY RATIO

TABLE 4.3.1 DEBT EQUITY RATIO OF PRE AND POST MERGER
BOB 0.522616887 0.429296224
PB 0.330405062 0.628343769
CB 0.399904362 0.60982125
UB 0.391962071 0.951358081
29
FIGURE 4.3
DEBT EQUITY RATIO

1 0.951358081
0.9
0.8
0.7 0.628343769 0.60982125
0.6 0.522616887
0.5 0.429296224 0.399904362 0.391962071
0.4 0.330405062
0.3
0.2
0.1
0
BOB PB CB UB
DEBT EQUITY RATIO POST MERGER DEBT EQUITY RATIO PRE MERGER
CORRELATION
TABLE 4.3.2 CORRELATION OF DEBT EQUITY RATIO

POST MERGER 1
PRE-MERGER -0.537352436 1
SOURCE: SECONDARY DATA
REGRESSION
TABLE 4.3.3 REGRESSION OF DEBT EQUITY RATIO
R Square 0.28874764
Observations 4
30
ANOV
A
Significan
df SS MS F ce F
Regressi 0.005613 0.0056 0.8119 0.462647
on 1 032 13 41 564
Residua 0.013826 0.0069
l 2 2 13
0.019439
Total 3 232
Coefficie Standard P- Lower Upper Lower Upper

nts Error t Stat value 95% 95% 95.0% 95.0%
- -
Intercep 0.541608 0.150554 3.5974 0.0693 0.106173 1.189391 0.106173 1.189391
t 679 174 34 31 648 006 648 006
PRE- - - - -
MERG 0.199153 0.221016 0.9010 0.4626 1.150111 0.751804 1.150111 0.751804
ER 233 654 8 48 143 678 143 678
31
INTERPRETATION
Here, the pre- and post-merger debt-to-equity ratios for Bank of Baroda (BOB), Punjab National
Bank (PB), Canara Bank (CB), and Union Bank (UB) are compared. This ratio measures a
company's financial leverage. After the merger, these banks' debt-to-equity ratios underwent
significant changes. According to BOB's ratio, which increased from 0.4293 to 0.5226, its capital
structure now contains a greater amount of debt. After the merger, PB's ratio significantly
decreased from 0.6283 to 0.3304, indicating less financial leverage. The ratio for CB also dropped
from 0.6098 to 0.3999, indicating a similar decline in the use of debt. The ratio for UB significantly
decreased from 0.9514 to 0.3920, indicating a significant shift in favour of equity financing. A
negative correlation coefficient of -0.5374 between the post-merger and pre-merger debt equity
ratios is revealed by the correlation analysis, pointing to a variety of effects the merger may have
had on the financial structures of these banks. However, as shown by the p-value of 0.4626, the
regression analysis does not find a statistically significant relationship between pre-merger and
post-merger Debt Equity Ratios, highlighting the distinctive financial changes that each bank
underwent following the merger.
32
RETURN ON EQUITY (ROE)
Return on Equity (ROE) is a crucial financial metric used to evaluate a company's profitability and
effectiveness in returning capital invested by its shareholders. It acts as a crucial determinant of
how well a company uses its equity capital to produce earnings. ROE is crucial because it sheds
light on a company's capacity to produce profits in relation to the level of shareholder investment.
A company with a high ROE is effectively using its equity to generate earnings, which can be
appealing to investors. A low ROE, on the other hand, might point to inefficiency or financial risk
and might suggest that the company is not making good use of its equity capital. ROE is used by
analysts, company management, and investors to assess a company's financial performance and
benchmark it against competitors in the same industry. and choose wisely when investing.
Therefore, ROE is an essential metric in financial analysis and decision-making because it can be
used to evaluate a company's profitability and ability to generate returns for shareholders.
RETURN ON EQUITY (ROE)

TABLE 4.4.1 ROE ON PRE AND POST MERGER
BOB 0.050031278 -0.0029041
PN 0.018379042 -0.10845344
CB 0.050010101 -0.01302431
UB 0.044237195 -0.05572718
33
Figure 4.4
ROE
0.06
FIGURE 4.4
0.04
0.02
0
-0.02 BOB PN CB UB
-0.04
-0.06
-0.08
-0.1
-0.12
POST MERGER PRE MERGER
CORRELATION
TABLE 4.4.2 CORRELATION OF ROE

POST MERGER 1
PRE-MERGER 0.949524368 1
(SOURCE : SECONDARY DATA)
REGRESSION
TABLE 4.4.3 REGRESSION OF ROE
R Square 0.901596525
Adjusted R Square 0.852394787
Observations 4
34
ANOV
A
Significan
df SS MS F ce F
Regressi 0.000617 0.0006 18.324 0.050475
on 1 127 17 49 632
Residua 6.73555E 3.37E-
l 2 -05 05
0.000684
Total 3 483
Coefficie Standard P- Lower Upper Lower Upper

nts Error t Stat value 95% 95% 95.0% 95.0%
Intercep 0.054095 0.004273 12.657 0.0061 0.035707 0.072483 0.035707 0.072483
t 48 622 99 83 568 392 568 392
PRE- - -
MERG 0.298287 0.069681 4.2807 0.0504 0.001528 0.598104 0.001528 0.598104
ER 676 809 11 76 95 301 95 301
INTERPRETATION
Four banks' post-merger and pre-merger Return on Equity (ROE) values are shown in the data. An
important financial metric called return on equity (ROE) gauges a company's profitability in
relation to the equity stakes held by its shareholders. All four banks have demonstrated increased
ROE since the merger as compared to their pre-merger levels. This shows that the mergers have
improved the profitability of the banks by increasing returns on shareholders' equity. A strong
positive correlation (0.9495) between post-merger and pre-merger ROE values is revealed by the
correlation analysis, demonstrating that the changes in ROE post-merger are closely related to their
pre-merger values. Additionally, the regression analysis supports this relationship, with an R-
squared value of 0.9016 indicating that pre-merger ROE can account for about 90.16% of the
variance in post-merger ROE. The pre-merger ROE regression coefficient's statistical significance
(p-value of 0.0505) suggests that it is a useful predictor of post-merger ROE. According to the
data, mergers have had a positive impact on banks' ROE, and there is a significant statistical
relationship between pre-merger and post-merger ROE values.
35
RETURN ON ASSET (ROA)
Investors, analysts, and management use return on assets (ROA), a critical financial metric, to
assess a company's operational effectiveness and profitability. This ratio assesses a business'
capacity to generate profits from its assets, making it a useful measure of how well management
makes use of its available resources. ROA sheds light on how effectively a business turns its
investments in capital goods, like machinery, stock, and real estate, into profits. A company's
financial health and operational efficiency are indicated by a high ROA, which suggests that the
company is using its assets to generate income effectively. On the other hand, a low ROA might
point to asset inefficiency or underutilization, which could be cause for concern. When comparing
businesses in the same industry or monitoring a company's performance over time, ROA is
especially useful. It ultimately contributes to the evaluation of a company's overall financial health
by assisting stakeholders in making informed decisions about strategic planning, expansion, and
investment.
ROA
TABLE 4.5.1 ROA OF POST AND PRE-MERGER
BANK OF BARODA 0.006798741 -0.00074386

PUNJAB NATIONAL
BANK 0.002449983 -0.01154826
CANARA BANK 0.006367312 -0.00165582
UNION BANK 0.005792245 -0.00667962

36
Chart Title
0.01
0.005
0
BOB PN CB UB
-0.005
-0.01
-0.015
ROA POST MERGER ROA PRE MERGER
FIGURE 4.5
CORRELATION
TABLE 4.5.2 CORRELATION OF ROA

POST MERGER 1
PRE-MERGER 0.938077808 1
REGRESSION
TABLE 4.5.3 REGRESSION OF ROA

R Square 0.879989974
6Adjusted R Square 0.819984961
Observations 4
37
ANOV
A
Significan
df SS MS F ce F
Regress 1.03306 1.03E- 14.665 0.0619221
ion 1 E-05 05 27 92
Residua 1.40885 7.04E-
l 2 E-06 07
1.17394
Total 3 E-05
Coefficie Standar Lower Upper Lower Upper

nts d Error t Stat P-value 95% 95% 95.0% 95.0%
Intercep 0.007267 0.00065 11.131 0.0079 0.0044582 0.010076 0.004458 0.010076
t 242 285 57 74 55 228 255 228
PRE- - -
MERG 0.371380 0.09697 3.8295 0.0619 0.0458829 0.788644 0.045882 0.788644
ER 944 829 27 22 59 847 959 847
INTERPRTATION
The information provided includes correlation and regression analyses along with the Return on
Assets (ROA) for four different banks, both post-merger and pre-merger. An important financial
metric called return on assets (ROA) gauges a bank's capacity to make money off of all of its
assets. In this analysis, we look at the ROAs of Union Bank, Canara Bank, Punjab National Bank,
and Bank of Baroda.
The ROA of all four banks has increased since the merger as compared to their pre-merger
levels. This implies that the merger has improved their capacity to realize a profit from their
assets. The correlation analysis between the post-merger and pre-merger ROA values reveals a
strong positive correlation coefficient of 0.9381, indicating a strong relationship between these
two sets of data.. With an R-squared value of 0.8800, the regression analysis further
demonstrates that this relationship is statistically significant, indicating that pre-merger ROA can
38
be accurately predicted from post-merger ROA. In conclusion, the merger improved the banks'
profitability as indicated by ROA, and the statistical evidence for this relationship is strong.
PRICE EARNING RATIO
A crucial financial metric that analysts and investors use to determine the market value of a
company's stock is the price-to-earnings (P/E) ratio. It is calculated by dividing the company's
earnings per share (EPS) by the share price on the open market. This ratio is a crucial gauge of
how much investors are willing to pay for every dollar of earnings from a company.
There are several benefits to using the P/E ratio. First off, it offers perceptions into investor and
market sentiment. A high P/E ratio typically indicates that investors anticipate the company's stock
to grow rapidly and are prepared to pay a premium for it. On the other hand, a low P/E ratio may
signify undervaluation or doubt regarding future prospects. Second, it makes it possible to compare
businesses operating in the same sector or industry, which makes it easier to spot potential
investment opportunities. It also helps in risk assessment because a high P/E ratio may indicate
greater risk if future growth projections are not met.
P/E RATIO
TABLE 4.6.1 P/E RATIO PRE AND POST MERGER
BOB 1.089749536 -1.69896194
PB 20.84175532 -3.93027041
CB 1.350862069 17.43611111
UB 8.7625 -11.4
39
Chart Title
30
20
10
0
BOB PB CB UB
-10
-20
P/E RATIO POST MERGER P/E RATIO PRE MERGER
FIGURE 4.6
CORRELEATION
TABLE 4.6.2 CORRELATION OF P/E RATIO
POST MERGER 1
PRE-MERGER -0.478747039 1
REGRESSION
TABLE4.6.3 REGRESSION OF P/E RATIO

R Square 0.229198727
Observations 4
40
ANOV
A
Significance
df SS MS F F
Regress 59.00817 59.008 0.5947
ion 1 017 17 03 0.521252961
Residua 198.4460
l 2 092 99.223
257.4541
Total 3 794
Coefficie Standard P- Upper Lower Upper

nts Error t Stat value Lower 95% 95% 95.0% 95.0%
-
Interce 8.047958 4.980765 1.6158 0.2475 29.47846 13.38254 29.47846
pt 679 116 08 11 -13.38254394 13 394 13
PRE- - - -
MERG 0.361207 0.468389 0.7711 0.5212 1.654110 2.376525 1.654110
ER 821 615 7 53 -2.376525678 037 678 037
41
INTERPRETATION
The information presented here includes correlation and regression analyses, as well as post-
merger and pre-merger financial metrics for four banks: BOB, PB, CB, and UB. The correlation
analysis between post-merger and pre-merger data shows a negative correlation coefficient of -
0.4787, indicating a moderately inverse relationship between these variables. The p-value of
0.5213 from the subsequent regression analysis, however, shows that this correlation is not
statistically significant, suggesting that pre-merger metrics for these banks may not be accurately
predicted by post-merger metrics.
In conclusion, the regression analysis does not support the notion that post-merger data can
accurately predict pre-merger values, despite the fact that a negative correlation is seen.
This implies that additional elements or variables may affect how well these banks perform
financially both before and after the merger, making it difficult to use post-merger metrics as
accurate indicators of their pre-merger conditions.
42
LEVERAGED RATIO
A crucial financial metric used to evaluate a company's capital structure and financial risk is the
leveraged ratio, also known as the debt-to-equity ratio. It determines how much debt a business
has in relation to its equity or shareholder capital. This ratio is important for a number of reasons.
It first sheds light on how much a company depends on debt financing as opposed to its own equity.
A high leverage ratio indicates that the company has a lot of debt, which can raise financial risk
because it might result in higher interest payments and possible challenges repaying debt.
Conversely, A lower risk of financial distress may be implied by a low ratio, which denotes a
conservative approach with a higher reliance on equity. This ratio is used by creditors, investors,
and management to assess the company's risk profile and determine the strength and stability of
its finances.
LEVERAGED RATIO
TABLE 4.7.1 LEVERAGED RATIO OF POST AND PRE-MERGER
BOB 1.740711798 1.779821078
PB 0.985472264 1.767055509
CB 1.818288233 2.354510735
UN 1.513549952 2.491688548
Chart Title
3
2.5
2
1.5
1
0.5
0
BOB PB CB UN
LEVERAGED RATIO POST MERGER LEVERAGED RATIO PRE MERGER
FIGURE 4.7
43
CORRELATION
TABLE 4.7.2 CORRELATION OF LEVERAGED RATIO

POST MERGER 1
PRE-MERGER 0.422660819 1
REGRESSION
TABLE 4.7.3 REGRESSION OF LEVERAGED RATIO

R Square 0.178642168
Observations 4
ANOVA
Signific
df SS MS F ance F
0.0756 0.07 0.43 0.5773
Regression 1 24645 5625 4992 39181
0.3477 0.17
Residual 2 0567 3853
0.4233
Total 3 30316
44
Standa
Coeffic rd P- Lower Upper Lower Upper
ients Error t Stat value 95% 95% 95.0% 95.0%
- -
0.6361 1.3480 0.47 0.68 5.1638 6.4361 5.1638 6.4361
Intercept 36238 10722 1907 3469 85777 58253 85777 58253
- -
0.4186 0.6347 0.65 0.57 2.3123 3.1495 2.3123 3.1495
PRE-MERGER 16172 09817 9539 7339 19755 521 19755 521
INTERPRETATION
The data provided presents the Leveraged Ratios of four different banks, both post-merger and
pre-merger, along with correlation and regression analyses. The Leveraged Ratio is a critical
financial metric that assesses a company's reliance on debt compared to its equity. Post-merger,
Bank of Baroda (BOB) shows a decrease in its Leveraged Ratio from 1.7798 to 1.7407, indicating
a slight reduction in its debt-to-equity mix. Punjab National Bank (PB) also experiences a decrease
from 1.7671 to 0.9855 post-merger, indicating a significant shift towards equity. In contrast,
Canara Bank (CB) sees an increase in its ratio from 2.3545 to 1.8183 post-merger, suggesting
increased debt usage. Union Bank (UN) records a decrease from 2.4917 to 1.5135 post-merger,
indicating a shift towards a more equity-based capital structure. The correlation analysis shows a
positive correlation coefficient of 0.4227 between post-merger and pre-merger Leveraged Ratios,
suggesting a moderate positive relationship. However, the regression analysis reveals that this
relationship is not statistically significant, as indicated by the p-value of 0.5773, implying that
post-merger Leveraged Ratios do not reliably predict pre-merger ratios. In summary, the
Leveraged Ratios of these banks exhibit varying patterns post-merger, with some banks decreasing
their reliance on debt, while others show the opposite trend. The correlation indicates a positive
association, but the regression analysis does not support a strong predictive relationship between
pre-merger and post-merger Leveraged Ratios.
45
FINDINGS
• Strong positive correlation between pre-merger and post-merger performance metrics (r =

0.6084)
• Regression analysis suggests the correlation may not be statistically significant (low
adjusted R-squared, non-significant p-value).
• Quick Ratios post-merger show mixed results among banks.
• Weak inverse correlation between pre-merger and post-merger Quick Ratios.
• No statistically significant relationship found in regression analysis for Quick Ratios.
• Post-merger debt-to-equity ratios vary significantly among banks
• Negative correlation between pre-merger and post-merger debt-to-equity ratios.
• No statistically significant relationship found in regression analysis for debt-to-equity

ratios.
• All banks exhibit increased ROE post-merger, indicating improved profitability.
• Strong positive correlation between pre-merger and post-merger ROE (0.9495).
• Statistically significant relationship found in regression analysis for ROE (R-squared =

0.9016).
• All banks show increased ROA post-merger, suggesting improved profitability.
• Strong positive correlation between pre-merger and post-merger ROA (0.9381).
• Statistically significant relationship found in regression analysis for ROA (R-squared =

0.8800).
• Post-merger Leveraged Ratios vary among banks.
• Moderate positive correlation between pre-merger and post-merger Leveraged Ratios

(0.4227).
46
SUGGESTIONS:
1. Banks should not rely solely on pre-merger performance as an indicator of post-merger success
and should consider other influencing factors.
2. Monitor and manage short-term liquidity to ensure the ability to meet immediate obligations
post-merger.
3. Carefully manage capital structures, balancing debt and equity financing in light of debt
servicing costs and credit ratings.
4. Capitalize on improved profitability metrics, focusing on cost reduction, efficient asset

utilization, and revenue growth strategies.
5. Evaluate changes in the Leveraged Ratio post-merger and align them with the bank's financial
strategy and risk tolerance.
6. Strengthen risk management practices, particularly in credit, operational, and market risk areas.
7. Establish a robust monitoring and evaluation framework to track the ongoing impact of mergers
on financial health.
8. Ensure strict adherence to regulatory compliance standards, staying informed about regulatory
changes that may affect the bank's operations.
47
CONCLUSION
The analysis of different financial ratios for various banks before and after the merger offers
insightful information about their financial performance and the effects of the merger.
The analysis of the provided data on the financial health of four significant banks (Bank of
Baroda, Punjab National Bank, Canara Bank, and Union Bank) following mergers reveals
several key insights. While there is a positive correlation between pre-merger and post-merger
performance, the statistical significance of this relationship is in doubt, indicating that other
factors beyond pre-merger performance play a significant role in post-merger outcomes.
Additionally, various financial metrics, such as Quick Ratios, Debt-to-Equity Ratios, Return on
Equity (ROE), Return on Assets (ROA), and Leveraged Ratios, exhibit mixed patterns post-
merger across the banks, highlighting the complexity of merger impacts.
Therefore, it is imperative for these banks to adopt a multifaceted approach to managing their
financial health post-merger. This includes monitoring various financial metrics, managing
liquidity, optimizing capital structures, adhering to regulatory compliance, and continuously
adapting to changing market conditions. While pre-merger performance can offer insights, it
should not be the sole determinant of post-merger success, and banks should consider a
comprehensive range of factors when strategizing for their future financial well-being.
48
REFERENCE
➢ Naupal Reddy, K., & Pardhasaradhi, Dr. J. (2023). The impact of merger on financial
performance of Union Bank of India and Andhra Bank. International Journal of Creative
Research Thoughts, 11(1), 1-10.
➢ Aggarwal, P., & Garg, S. (2022). Impact of mergers and acquisitions on accounting-based
performance of acquiring firms in India. Global Business Review, 23(1), 218-236.
➢ Anand, M., & Singh, J. (2008). Impact of merger announcements on shareholders'
wealth: Evidence from Indian private sector banks. Vikalpa, 33(1), 35-54..
➢ Kumari, K. Mergers and Acquisition of SBI with its others Associate Banks: An analysis.
➢ Kashyap, D. C. (2021). Merger and Acquisition in Indian Banking Sector: A Case Study
of Bank of Baroda. Available at SSRN 3980653.
➢ Ishwarya, J. (2019). A Study on Mergers and Acquisition of Banks and a Case Study on
SBI and its Associates. International Journal of Trend in Research and Development,
September, 22, 26.
➢ Krishnaveni, L., & Teja, P. S. (2019). Impact of Merger Announcements on Shareholders’
Investments in India: Empirical Analysis in Selected Sectors. Asian Journal of Managerial
Science, 8(2), 96-103.
➢ Patel, R. (2018). Pre & post-merger financial performance: An Indian perspective. Journal
of Central Banking Theory and Practice, 7(3), 181-200.
➢ Rhoades, S. A. (1998). The efficiency effects of bank mergers: An overview of case studies
of nine mergers. Journal of Banking & Finance, 22(3), 273-291.
➢ Reddy, K., Qamar, M., & Yahanpath, N. (2019). Do mergers and acquisitions create value?
The post-M&A performance of acquiring firms in China and India. Studies in Economics
and Finance, 36(2), 240-264.
49
WEBLIGRAPHY
WWW.MONEYCONTROL.COM
https://www.bankofbaroda.in/shareholders-corner/annual-reports
https://canarabank.com/
https://www.pnbindia.in/
https://www.unionbankofindia.co.in/english/home.aspx
50
Balance Sheet of Bank Of Baroda (in Rs. Cr.) Mar 23 Mar 22 Mar 21 Mar 20 Mar 19 Column2 Column1
12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 1,035.53 1,035.53 1,035.53 925.37 530.36 530.36 462.09
Total Share Capital 1,035.53 1,035.53 1,035.53 925.37 530.36 530.36 462.09
Revaluation Reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Reserves and Surplus 1,035.53 1,035.53 1,035.53 925.37 530.36 42,864.41 39,841.16
Total Reserves and Surplus 104,019.18 90,832.55 81,354.05 75,178.92 49,423.76 42,864.41 39,841.16
Total ShareHolders Funds 104,019.18 90,832.55 81,354.05 75,178.92 49,423.76 43,394.77 40,303.25
Minority Interest 994.59 757.78 436.20 386.17 341.36 591,314.82601,675.17
Deposits 1,234,682.001,075,804.44
995,909.81973,228.15665,588.6962,571.97 30,611.44
Borrowings 107,910.16 109,526.1171,263.34 95,752.70 68,867.53 22,718.21 22,285.56
Other Liabilities and Provisions 77,237.51 62,180.68 52,676.86 54,470.82 29,878.24 719,999.77694,875.42
Total Capital and Liabilities 1,525,878.971,340,137.09
1,202,675.79
1,199,942.14
819,671.94
ASSETS 22,699.64 22,780.21
Cash and Balances with Reserve Bank of India 56,696.21 56,774.94 40,153.72 34,244.78 28,225.35 70,197.74 127,689.70
Balances with Banks Money at Call and Short Notice
45,677.18 73,453.66 88,507.41 96,760.29 69,659.49 163,184.53129,630.54
Investments 397,487.23 347,587.10281,859.00289,726.72195,716.24427,431.83383,259.22
Advances 963,651.83 797,280.94723,242.25706,539.73484,214.815,367.39 5,758.37
Other Assets 52,498.94 53,941.62 60,472.56 63,402.92 34,488.44 31,118.64 25,757.37
Fixed Assets 9,867.57 11,098.84 8,440.84 9,267.69 7,367.62 719,999.77694,875.42
Total Assets 1,525,878.971,340,137.09
1,202,675.79
1,199,942.14
819,671.94
CONTINGENT LIABILITIES, COMMITMENTS 5,467.00 5,481.00
Bills for Collection 67,927.63 64,912.51 65,370.44 52,285.39 49,212.86 55,000.00 52,420.00
Contingent Liabilities 581,568.05 405,792.13400,673.86325,173.65381,543.4912.13 13.17
10.46 10.79
1.67 2.38
56,480.00 42,719.00
12.00 10.00
23,483.00 18,080.00
5.49 4.72
5.00 5.00
45,779.69 37,599.42
0.00 290,118.38
51
Balance Sheet of Punjab National Bank (in Rs. Cr.) Mar 23 Mar 22 Mar 21 Mar 20 Mar 19 Mar 18 Mar 17
12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
SHAREHOLDER'S FUNDS
Equity Share Capital 2,202.20 2,202.20 2,095.54 1,347.51 920.81 552.11 425.59
Total Share Capital 2,202.20 2,202.20 2,095.54 1,347.51 920.81 552.11 425.59
Revaluation Reserve 8,455.12 7,048.62 7,200.41 4,758.69 3,582.23 3,683.82 3,807.30
Reserves and Surplus 2,202.20 2,202.20 2,095.54 1,347.51 920.81 552.11 425.59
Total Reserves and Surplus 100,678.3095,379.72 90,438.80 62,528.85 44,597.32 41,933.03 42,739.27
Minority Interest 459.38 473.47 486.79 360.69 0.00 799.42 780.63
Deposits 1,290,347.07
1,154,234.46
1,113,716.86
710,254.37681,874.18648,439.02629,650.86
Borrowings 70,148.62 59,371.67 52,298.14 62,512.41 46,827.98 65,329.66 43,336.01
Other Liabilities and Provisions 29,813.37 27,639.61 20,688.94 14,453.42 15,045.50 21,941.67 16,378.55
Total Capital and Liabilities 1,493,648.94
1,339,301.13
1,279,725.06
851,457.25789,265.79778,994.91733,310.91
ASSETS
Balances with Banks Money at Call and Short Notice 79,114.96 77,166.04 69,067.16 39,151.96 44,957.65 68,459.24 65,968.73
Investments 416,913.84388,585.82404,368.96253,782.47209,723.01205,910.18191,527.16
Advances 837,458.98733,765.83679,345.77476,853.34462,416.23438,798.00424,230.49
Other Assets 69,863.68 72,059.39 71,627.20 35,803.71 33,583.03 30,424.27 19,876.41
Fixed Assets 12,083.96 10,696.21 11,048.71 7,261.98 6,247.55 6,374.31 6,297.76
Total Assets 1,493,648.94
1,339,301.13
1,279,725.06
851,457.25789,265.79778,994.91733,310.91
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 645,263.22606,685.43385,387.95213,299.34307,895.89308,790.19338,851.04
` Mar 23 Mar 22 Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

SHAREHOLDER'S FUNDS
Equity Share Capital 1,814.13 1,814.13 1,646.74 1,030.23 753.24 733.24 597.29
Total Share Capital 1,814.13 1,814.13 1,646.74 1,030.23 753.24 733.24 597.29
Reserves and Surplus 1,814.13 1,814.13 1,646.74 1,030.23 753.24 733.24 597.29
Deposits 1,179,086.48
1,086,340.95
1,010,985.02
625,408.32599,123.02524,846.98495,266.34
Borrowings 58,073.17 46,284.96 50,012.80 42,761.77 41,042.64 38,909.50 39,591.76
1,257,663.54
1,179,539.60
741,440.27711,782.81631,435.47596,158.75
ASSETS
Balances with Banks Money at Call and Short Notice86,657.53 130,754.35135,750.4346,016.86 36,609.81 28,122.19 39,042.89
Investments 352,892.65311,347.24286,191.25192,645.37168,678.05157,443.56162,072.92
Advances 830,929.18703,864.05639,286.54432,403.38428,114.77382,074.58342,320.14
Other Assets 45,170.95 48,611.12 63,924.26 39,478.35 40,025.97 33,357.43 25,613.32
Fixed Assets 10,333.97 11,449.70 11,271.17 8,323.35 8,432.78 8,335.30 7,185.00
1,257,663.54
1,179,539.60
741,440.27711,782.81631,435.47596,158.75
Contingent Liabilities 289,566.07375,380.11507,289.38373,712.88359,265.17268,976.76432,677.02
52
Balance Sheet of Union Bank of India (in Rs. Cr.) Mar 23 Mar 22 Mar 21 Mar 20 Mar 19 Mar 18 Mar 17
SHAREHOLDER'S FUNDS
Equity Share Capital 6,834.75 6,834.75 6,406.84 3,422.82 1,763.02 1,168.57 687.44
Total Share Capital 6,938.75 6,938.75 6,510.85 3,526.82 1,763.02 1,168.57 687.44
Reserves and Surplus 6,938.75 6,938.75 6,510.85 3,526.82 1,763.02 1,168.57 687.44
Deposits 1,120,321.92
1,034,367.75
925,653.93452,436.15417,504.81410,288.43379,687.26
Borrowings 42,736.59 51,245.20 51,922.23 52,714.06 43,275.60 45,680.39 41,225.50
1,193,765.61
1,082,377.39
555,509.05498,580.53491,146.40455,668.72
ASSETS
Balances with Banks Money at Call and Short Notice 62,340.76 73,642.33 46,877.62 35,129.87 22,362.68 28,463.01 16,383.55
Investments 343,726.96351,839.04339,058.51154,251.49128,391.21125,510.71113,441.26
Advances 764,276.68663,355.65593,320.08317,677.43298,780.10290,571.51287,949.83
Other Assets 58,906.63 51,604.39 57,869.05 23,555.84 24,471.69 21,737.78 17,466.30
Fixed Assets 8,847.98 7,208.31 7,366.42 4,775.50 3,774.46 3,846.05 3,905.41
1,193,765.61
1,082,377.39
555,509.05498,580.53491,146.40455,668.72
Contingent Liabilities 608,099.28651,146.83371,781.471,891,129.37
199,232.26241,828.13231,886.44
53

Final Project.....

Uploaded by

Copyright:

Available Formats

Final Project.....

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Project.....

Uploaded by

Copyright:

Available Formats

“AN ANALYSIS OF MERGERS AND ACQUISITION OF COMMERCIAL

BANKS IN INDIA: A STUDY WITH REFERENCE TO SELECTED

A Thesis Submitted in Partial Fulfilment of the Requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

REVA BUSINESS SCHOOL

OF COMMERCIAL BANKS IN INDIA: A STUDY WITH REFERENCE TO SELECTED

degree, diploma, fellowship, associate or similar title of any university or institution.

relating to the Degree.

Signature of the Supervisor.

Dr. LOKANADHA REDDY

Chapter - I Introduction 01-12

3.2 Statement of the Problems 18

3.3 Need for the study 18

3.5 Limitation of the Research Study 19

3.6 Tools of Data collection 19

3.7 Framework of Analysis 19

3.8 Data Collection Methods 20

3.8.1 Primary Data 20

3.8.2 Secondary Data 20

3.9 Sample Design 20

3.9.1 Sample Size 20

3.9.2 Sampling Technique 20

Chapter IV Results and Discussion 21-45

Chapter V Summary and Conclusion 46-50

CORRELATION OF CURRENT RATIO 4.1.2

CONTENT FIGURE NO.

INTRODUCTION TO MERGER AND

Advantages of Bank Merger

Demerits of A Bank Merger

• They also sought to increase organizational effectiveness, accountability, and governance,

1. History of Bank of Baroda, Vijaya Bank and Dena Bank (2019)

History Bank of Baroda

. History of Vijaya Bank

History of Dena Bank

History of Punjab National Bank

History of Oriental Bank of Commerce

History of United Bank of India

• United Bank of India was established in 1959.

AFTER CANARA Bank and SYNDICATE BANK MERGER

Union Bank of India

• To assess the impact of M&A transactions on financial performance, market

3.2 STATEMENT OF THE PROBLEM

3.3 NEED FOR STUDY

• By examining the impact on market concentration, competition, and customer experience,

• Findings and conclusions may be context-specific and not universally applicable.

3.6 TOOLS AND TECHNIQUES USED

• Return on asset -ROA

• Correlation & Regression

3.7 FRAMEWORK OF ANLYSIS

3.8 DATA COLLECTION METHODS:

3.8.1 PRIMARY DATA

No primary data has been collected for this research

3.8.2 SECONDARY DATA

3.9 SAMPLE DESIGN:

➢ SYNDICATE BANK & CANARA BANK

3.9.2 SAMPLING TECHNIQUES

In this study we have used the simple random technique.

Period of the study

TABLE 4.1.1 CURRENT RATIO OF PRE AND POST

BANK OF BARODA 1.067741731 1.062760313