Pre-Merger and Post-Merger Operating Performance of SBI
Farman Ali1, Anshul Sharma2
1Farman Ali, Department of MBA, Uttaranchal University, Dehradun (Uttarakhand), India.
2Dr. Anshul Sharma, Department of Management, Uttaranchal University, Dehradun (Uttarakhand), India.
Manuscript received on 14 November 2019 | Revised Manuscript received on 03 December 2019 | Manuscript Published on 10 December 2019 | PP: 25-31 | Volume-8 Issue-3S2 October 2019 | Retrieval Number: C10051083S219/2019©BEIESP | DOI: 10.35940/ijrte.C1005.1083S219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In today’s business world the corporate and PSUs have practiced of major restructuring through merger and acquisition strategies. This is well acknowledged fact Mergers and Acquisitions are being considered as an admired strategy for augmentation. This research paper is based on how the merger of SBI associates into its parents company affects the financial performance on consolidation basis. In this article we analyzed the financial position before merger and after merger of SBI and find out an increase in the profitability by few parameters in short run while it gives the hike in performance as well as in efficiency for long term basis because of low operating cost. It has been observed that after the merger, bad loan pile up, suddenly the profit of the bank come down, during this period when the entire economy of India was facing the pressure of demonetization and GST regime in India while SBI was thinking to be indexed in top 50 banks of the world. This research article also reveals the fact and figures how mergers & acquisitions have consequences and effects on financial position of the bank performance considering five years from the very beginning of pre and post observation period. In this study t-test is used to evaluate all financial parameters before and after merger of five SBI associates into SBI and it is found that for short period of time, after merger the SBI did not perform well but after two years it has not only increased its profitability but also increase the efficiency by minimizing the operating cost.
Keywords: Key Ratio Analysis, Merger, Pre & Post Merger Value of SBI.
Scope of the Article: e-governance, e-Commerce, e-business, e-Learning