A Comparative Analysis of the Impact of M&A on Financial Performance of Indian Public and Private Sector Banks

A Comparative Analysis of the Impact of M&A on Financial Performance of Indian Public and Private Sector Banks

Authors:

Yashvita Jaiswal1, Simran Kaur2, Anamika Kumari3, Aryan Malhotra4, Priyanshu Singh5, Ritam Chakraborty6

LPU UNIVERSITY

1.      Abstract
The research provides a comparative analysis on how merger and acquisition affect the financial performance of the Indian public and private banks. This research paper analysis the impact merger of public sector bank, Punjab National Bank with Oriental Bank and United bank of India in 2019, Allahabad Bank with Indian Bank 2020, Bank of Baroda with Vijaya Bank and Dena Bank 2019, Canara Bank with Syndicate Bank 2019 and private sector bank Housing Development Finance Corporation with HDFC Bank 2022. The study analyzes financial parameters including Return on Equity, Return on Assets, Profit after Tax, Net Interest Margin and Non-Performing Asset, Profit per Employee, Business per Employee and Credit Deposit Ratio using data analysis techniques such as paired t- tests, normality test, Wilcoxon signed-rank tests, correlation and regression for a minimum of 3 years. After mergers and acquisitions, the study provides insights on the financial stability, operational effectiveness and strategic expansion in the Indian banking industry.