A Study on Comparative Analysis of Selected Banks: Pre and Post Merger Performance

This study analyses the pre- and post-merger financial performance of three Indian public sector banks: Canara Bank (merged with Syndicate Bank), Union Bank of India (merged with Andhra Bank and Corporation Bank), and Indian Bank (merged with Allahabad Bank). Using financial ratios (ROA, ROE, NPA ratio, and CAR) for three years before and after each merger (2017-2024), the research investigates the impact of mergers on profitability, asset quality, and capital adequacy. A paired t-test is employed to determine the statistical significance of changes in these ratios. The analysis reveals mixed results. While some banks showed improvements in ROA and ROE post-merger, these improvements were not always statistically significant. However, the study found statistically significant improvements in NPA ratios and CAR for several banks, suggesting that mergers can positively impact asset quality and capital adequacy. The study concludes that while mergers may not always lead to immediate and statistically significant improvements in profitability, they can contribute to enhanced financial stability through improved asset quality and stronger capital positions