Open AccessPERFORMANCE EVALUATION OF SBI - A COMPARATIVE STUDY OF PRE AND POSTMERGER
Author(s) -
Mahesha,
H Manu
Publication year - 2021
Publication title -
paripex indian journal of research
Language(s) - English
DOI - 10.36106/paripex/9506041
Subject(s) - profitability index , business , leverage (statistics) , profit (economics) , constraint (computer aided design) , debt , finance , financial system , accounting , economics , engineering , mechanical engineering , machine learning , computer science , microeconomics
A merger precisely means joining of two entities or two companies into one.Changing global scenario and sustainabilityof banks impedes the amalgamation in the banking industry as a corporate strategy. It boosts their economic andoperational power, lift up their worldwide contact, accomplish synergy by unite business activities, increasedperformance and lessen costs. This paper discusses the six way horizontal merger between SBI with its six associatebanks including Bharatiya Mahila Bank. The primary purpose of the paper is to analyse the pre and post-mergerfinancial performance of State Bank of India with the help of different financial parameters such as debt coverage ratios,leverage ratios, investment ratios, management efficiency ratios, profitability ratios and profit and loss account ratios.The study is based on secondary data covering six years annual data of pre and post-merger period. The studyevidenced that, the state bank of India is not having significant improvement in the financial performance in the postmerger period.There are several financial constraint have revealed major development during the post-merger periodbut most of the constraint haven't shown significant improvement during the post-merger period.