PERFORMANCE EVALUATION OF SBI - A COMPARATIVE STUDY OF PRE AND POSTMERGER

Abstract

A merger precisely means joining of two entities or two companies into one.Changing global scenario and sustainability of banks impedes the amalgamation in the banking industry as a corporate strategy. It boosts their economic and operational power, lift up their worldwide contact, accomplish synergy by unite business activities, increased performance and lessen costs. This paper discusses the six way horizontal merger between SBI with its six associate banks including Bharatiya Mahila Bank. The primary purpose of the paper is to analyse the pre and post-merger financial 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 study evidenced 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 period but most of the constraint haven't shown significant improvement during the post-merger period.