A STUDY ON IMPACT OF PRE AND POST MERGER FINANCIAL PERFORMANCE OF SELECTED BANKS IN INDIA

Dr. V.R. Nedunchezian, Professor, Kumaraguru College of Technology, Coimbatore . Ms. K. Premalatha, Research cholar, Kumaraguru College of Technology, Coimbatore .

1. INTRODUCTION The ban!ing mar!et remains of constant interest to researchers, because of the role that the ban!ing sector "lays in the country#s financial system. The ban!ing section $ill na%igate through all the as"ects of the &an!ing ystem in 'ndia. The gro$th in the 'ndian &an!ing 'ndustry has been more (ualitati%e than (uantitati%e and it is e)"ected to remain the same in the coming years. &ased on the "ro*ections made in the +'ndia Vision ,-,-+ "re"ared by the Planning Commission and the Draft .-th Plan, the re"ort forecasts that the "ace of e)"ansion in the balance/sheets of ban!s is li!ely to decelerate. Describing and assessing the different criteria sim"le criteria used by financial economists to e%aluate merger success. Mergers and ac(uisitions in ban!ing sector ha%e become familiar in the ma*ority of all the countries in the $orld. 0 large number of international and domestic ban!s all o%er the $orld are engaged in merger and ac(uisition acti%ities. 1ne of the "rinci"al ob*ecti%es behind the mergers and ac(uisitions in the ban!ing sector is to rea" the benefits of economies of scale. 2ith the hel" of mergers and ac(uisitions in the ban!ing sector, the ban!s can achie%e significant gro$th in their o"erations and minimize their e)"enses to a considerable e)tent. 0nother im"ortant ad%antage behind this !ind of merger is that in this "rocess, com"etition is reduced because merger eliminates com"etitors from the ban!ing industry. The main moti%e of ban! mergers is to enhance the efficiency of ban!s, but the increase in o"erating "rofits 3if any4 is "artly offset by re%aluation effects in the course of the restructuring "rocess. 1%er the last decade, ban! mergers and ac(uisitions ha%e been occurring at an un"recedented rate. The "ur"ose of this study is to determine the underlying and dri%ing forces or causation based u"on e)amination of resent ban!ing merger acti%ity. 0 content analysis $as "erformed utilizing the 5D'C 0""lications for Merger60c(uisitions from .778 and .779.

2. REVIEW OF LITERATURE Jens Ha en!"#$$% M&'(ae) C"))&ns an! Ke*&n Kease+ ,2--./ in their "a"er outline the ban! deregulation and ac(uisition acti%ity, focusing on the : 0, 'taly and ;ermany $herein they ha%e identified as to ho$ changes in the regulatory regime of the : 0, 'taly and ;ermany ha%e s"urred ban! merger acti%ities. The same holds true in the case of 'ndia as $ell. The underlying (uestion here is that if there are benefits associated $ith a more integrated ban!ing sector < it is an im"ortant issue to e)amine ho$ more M=0 and, ultimately, more financial integration can be achie%ed. The ban! merger "henomenon has been $idely acce"ted as the $ay to achie%e "erformance im"ro%ement, es"ecially $hen merger acti%ities focus on geogra"hy, economy of scale, and acti%ity lines DeL"n % 2--10 H"1s2"n et al.% 2--1. The economies of scale of merged ban!s could be achie%ed since they can reduce the a%erage cost by e)"anding the %olume of similar ban!ing "roducts. Therefore, $hen the economies of scale argument hold, then the greater the benefits recei%ed by the merged ban!s Jensen an! R13a'4% 1567. tudy on the effect of ban! mergers on "erformance has been conducted in many countries $ith %arious findings. Man"8 Anan! an! Ja an!ee9 S&n ( ,2--6/ ha%e analyzed fi%e mergers in the 'ndian ban!ing sector to understand the shareholder $ealth effects of ban! mergers. These are mergers of the Times &an! $ith the >D5C &an!, the &an! of Madura $ith the 'C'C' &an!, the 'C'C' ?td. $ith the 'C'C' &an!, the ;lobal Trust &an! $ith the 1riental &an! of Commerce, and the &an! of Pun*ab $ith the Centurion &an!. :sing the single/factor model, their study finds that the a%erage cumulati%e abnormal return 3C0R4 of the bidder ban!s is "ositi%e and substantial, thus signifying that the bidder ban!s got significant "ositi%e abnormal returns. The t$o/factor model results re%ealed that the merger announcement in the 'ndian "ri%ate sector ban!s generated "ositi%e and statistically significant returns to the shareholders of the bidder ban!s.

A))en an! B""3a):Ba2'(e)"# ,2--;/ studied the "ost/crisis ban! mergers in Malyasia. The study found that the target ban!s tend to be less efficient than those ac(uring ban!s. 5urthermore, most efficiency gains $as found due to a an im"ro%ement in managerial efficiency. 'n contrast, K<an ,2--=/ based on : ban!ing consolidation "olicy in .779 raised issue of $hether mergers contributed to the efficiency gains. 5indings from "re%ious studies of ban! mergers in 'ndonesia also sho$ %arious results. Ga#+ G"#2"n% Ma22(&as Ka() an! R&'(a#! R"sen ,2--;/ ha%e "resented a model of defensi%e mergers and merger $a%es. They suggest that mergers and merger $a%es can occur $hen managers "refer that their firms remain inde"endent rather than be ac(uired assuming that managers can reduce their chance of being ac(uired by ac(uiring another firm and hence increasing the size of their o$n firm. 0ccording to them, the timing of mergers, the identity of ac(uirers and targets, and the "rofitability of ac(uisitions de"end on the size of the "ri%ate benefits of control, managerial e(uity o$nershi", the li!elihood of a regime shift that ma!es some mergers "rofitable, and the distribution of firm sizes $ithin an industry. Ja+ Me(2a > Ra? K1?a# Ka4an& ,2--@/ in their research ha%e "robed into the same. 'n the "rocess they ha%e ado"ted a holistic a""roach to com"are the rationale behind the international mergers = ac(uisitions scenario $ith the 'ndian scene thereby gazing at them both as an o""ortunity and as im"erati%e "ers"ecti%es. 'n order to tac!le the demands of the ne$ o"erating en%ironment that the 'ndian ban!ing industry is faced $ith different strategies ha%e been ado"ted. 0nd one such strategy is consolidation %ia mergers and ac(uisitions. They ha%e tried to bring to light the fact that Mergers and 0c(uisitions 3M=04 is highly en%ironment de"endant and hence there is a constant focus on this as"ect $hile "ertaining to "ractices. 7. STATEMENT OF PROBLEM ome assert that the acti%ities of mergers re"resent a ne$ force in creati%ity and "roducti%ity. ome other %ie$ is blight in the economical en%ironment. This is an area of "otential good as $ell as "otential harm in cor"orate strategy including &an!ing 'ndustry. Mergers ta!e "lace due to %arious moti%es. Therefore an analysis has to be made to com"are 5inancial Performance of "re or "ost merger of the &an!s.

OBJECTIVES OF THE STUDY 1. To e)amine and e%aluate the im"act of Mergers on the Ca"ital 0de(uacy Position of the selected ban!s. 2. To e)amine and e%aluate the im"act of Mergers on the Management @fficiency Position of the selected &an!s. 7. To e)amine and e%aluate the im"act of Mergers on the @arnings and "rofitability Position of the selected &an!s. =. To e)amine and e%aluate the im"act of Mergers on the ?e%erage Position of the selected &an! =. RESEARCH METHODOLOGY T+9e "$ Resea#'(A Descri"ti%e research is used in this study that in%ol%es collection of (uantitati%e information that can be tabulated and used for finding the tandalone %aluation of the Com"any. Da2a C"))e'2&"n Me2("! an! S"1#'es "$ Da2aA The study in%ol%es secondary data. The secondary data $ere collected mainly from the annual re"orts of the target com"anies. T"")s an! Te'(n&B1es 1se! $"# S21!+A 'n order to find the %aluation of the com"any, the follo$ing 5inancial tools ha%e been used. Sa?9)e s&Ce 1ut of se%en ban!s merged during the "eriod ,--9 < ,-.-, t$o ban!s $ere selected for this "a"er based on the con%enience of the researcher. S. N" . , Ta# e2 Ban4 Centurion &an! of Pun*ab &an! of Ra*asthan A'B1&#e# Ban4 >D5C 'C'C' &an! ?td Yea# "$ Me# e# ,--9 ,-.-

;. ANALYSIS AND INTERPRETATION

;.1 Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 ;.1.1 Ca9&2a) a!eB1a'+ #a2&" P#e Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--= 2--; 2--@ 2--2 2--7 ...8 .,..8 ...B. .A.7A ...., ..-D ..9 -.D87 ..-A8 ..-.C -.B.7 -.BBC -.B98 -.,D8 -.AD8 -.--9 -.--8 -.--B -.-.. -.--7 A*e#a e P#eDP"s2 CAR DER TATAR ECTA P#e .,.-BB ...B -.B-,B -.--9B P"s2 .C.D7B -.C-C, -.CB8D -.-,--D S2an!a#! !e*&a2&"n P#e ...,-8AD -.A,,7-7 -.-9A-.8 -.--,9-, P"s2 ..BA.... -.,ABA8, -.-B,C.9 -.-,B8A P"s2 Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--6 2--5 2-12-11 2-12 .A.8 .C.87 .9.BB .8.,, .8.C, -.ADB -..9D -.8 -.C89 -.979 -.B98 -.CA7 -.C8C -.C98 -.C9D -.--A -.-8,A -.--, -.-.9 -.-.8. C"##e)a2&"n P#e Vs P"s2 /-.D-D-,. -.-..-C9 -.7DAA7-...87DD

Yea# CAR DER TATAR ECTA

C"e$$&'&en2 "$ Va#&an'e P#e -.-7A-BC -.,DA,CB -..D.BC. -.A8C..C P"s2 -.-7--B. -.B8A7--.-999C8 ..,,8C9B

Ca9&2a) a!eB1a'+ #a2&"A 'n the year ,--, it $as about .A.7A decreased to ...8 in ,--B increased to .,..8 and decreased to ...B. in the year ,--8. 'n "ost merger "erformance it $as about .A.8 in ,--D and $ent u" to .9.BB in ,-.- and it came do$n to .8.C, in ,-.,.
De32 EB1&2+ #a2&"A 'n the year ,--, it $as about ..-A8 increased to ..9 in ,--C and decreased to

-.D87 in ,--8. Post merger D@R status is started decreased from -.ADB in ,--D to -..9D in ,-.7 and increased to -.8 to -.979 during ,-.- to ,-.,. D@R sho$s fluctuation in the mergers.
T"2a) A!*an'e 2" T"2a) Asse2 Ra2&"A 'n "re merger of T0T0R -.,D8 in ,--, started increased and

$ent to -.B98 in the year ,--8. 'n Post merger "eriod sho$s -.B98 to o-.C9D during ,--D to ,-., so increased after merger. EB1&2+ Ca9&2a) 2" T"2a) Asse2sA 'n "re merger the ratio is decreased from -.-.. to -.-B during ,--, to ,--8. 'n "ost merger started increased from -.--A to -.-8,, decreased in ,-.- about -.--, and increased to -..9 and -..8 in ,-.. and ,-.,.

;.1.2 Mana e?en2 E$$&'&en'+ Ra2&" P#e Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--= 2--; 2--@ 2--2 2--7 -.AD8 ,A9D9 .98CB -.C,C A-B,B ,,A98 -.CDB B,A-9 A-B-7 -.9-A C.B,7 A8ACB -.8,D 9AC-8 CC979 P"s2 Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--6 2--5 2-12-11 2-12 -.8A .AA.99 .--987 -.-87 .DA,9. .B,D., -.9C, ,,,BC7 .89B-B C"##e)a2&"n P#e Vs P"s2 -.-CACC8 -.7DC9-, -.78.8D8 -.989 ,99ACA ,-DCD8 -.-9D9 AA97-7 ,B89-8

Yea# TATDR AGR TDR

A*e#a e P#eDP"s2 TATDR AGR TDR P#e -.C8C, BB,7-.8 A,C.D P"s2 -.BC7AB ,A-DAA.D .9A,CC.B

S2an!a#! !e*&a2&"n P#e -...7AD7 .7C--.9. .BD9A.B. P"s2 -.ACC7-D 97DB. C8879.97

C"e$$&'&en2 "$ Va#&an'e P#e -.,..,AA -.BB-,7 -.BC9A7 P"s2 -.99BD,B -.ABCDD. -.A,9,C-

T"2a) A!*an'e 2" T"2a) De9"s&2 Ra2&"A in "re merger the T0T0R is about -.AD8 during the year ,--, increased to -.7,D in ,--8. 'n "ost merger "erformance -.8A in ,--D increased to -.9D9 in ,-.,. T0TDR sho$s "ositi%e ratio for mergers. Asse2s G#"<2( Ra2eA Pre merger assts has been increased from ,A9D9 to 9AC-8 during the year ,--, to ,--8. Post merger "erformance of the &an! also increased during the year from .AA.99 in ,--D to AA97-7 in the year ,-.,. 0;R sho$s "ositi%e ratio for mergers. T"2a) De9"s&2 Ra2eA De"osits has also increased during "re merger as $ell as "ost merger during the year ,--, to ,-., from .98CB to ,B89-8. TDR sho$s "ositi%e ratio for mergers. ;.1.7 Ea#n&n > P#"$&2a3&)&2+
P#e Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--= 2--; 2--@ 2--2 2--7 -.,A9 ..,C ..A. -.DA8 -..7B ..BB ,..A -.D-7 A*e#a e P#eDP"s2 DPR P#e -..DAB P"s2 -..C8D -..89 ..B, ..78 -.DA7 -..8C ..88 -.CC -.D,7 -..CB ..C, -.C8 -.9D9 P"s2 Me# e# "$ Cen21#&"n Ban4 "$ P1n8a3 <&2( HDFC Ban4 2--6 2--5 2-12-11 2-12 -.-.D -..D7 A,B.AD ABB.B -.AC E -.D,-.D,B -..D8 -..78 B9-..7 CBC.CA -.-7 E -.D-7 -.D.D C"##e)a2&"n P#e Vs P"s2 /-.7-D-DD -..7C .,9.CD /-.A, -.DA8

Yea# DPR ROA OITI IITI

S2an!a#! !e*&a2&"n P#e -.-AAAD. P"s2 -.-999-A

C"e$$&'&en2 "$ Va#&an'e P#e -..D,-.A P"s2 -.B7CCCA

ROA OITI IITI

..BCD ..A-, -.D,

A--.B,B -.-B -.D,.B

-..B79AA -.9B9BB, -.-,.DB

,.9.77DD -.AA99D9 -.--7DA7

-..-,87D -.C9B-9, -.-,88AC

-.9,C8A9 D.BBB89A -.-..79D

-.,B8,,8 -.8A7.,C /-.7,7CD9

D&*&!en! Pa+"12 Ra2&"A DPR has been decreased from -.,A9 in ,--, to -..CB in ,--8. Post merger DPR sho$s increasing ratio from -.-.D in ,--D to -..7C in ,-.,. Re21#n "n Asse2sA 't sho$s ..,C during ,--, started increasing to ..88 in ,--C and decreased to ..C, in ,--8 in Pre merger and in Post merger increased to "ea! from A,B.AD to CBC.CA and decreased to .,9.CD in ,-.,. O2(e# In'"?e 2" T"2a) In'"?eA 'n "re merger it sho$s ..A. in ,--, increased to ..78 in the year ,--B started decreasing during ,--C < ,--8 from -.CC to -.C8. 'n "ost merger "erformance of the 1'T' sho$s negati%e im"act for the mergers because the ratio stands in negati%e. In2e#es2 In'"?e 2" T"2a) In'"?eA ''T' has been decreased from -.DA8 in the year ,--, to -.9D9 in ,--8 and in "ost merger ratio is about -.D,- in ,--D to -.DA8 in ,-.,. 't sho$s a "ositi%e im"act on merging ban!. ;.1.=
Yea# CR ER

Le*e#a e Ra2&"
2--2 -.-8 B.,B 2--7 -.-8 B.A7 2--= -.-A A.A7 2--; -.-A C.8. 2--@ -.-B C..D 2--6 -.-B B.D7 2--5 -.-B C.,A 2-1-.-A 9..B C"##e)a2&"n P#e Vs P"s2 /-.,B9,899 -.-B-B9A 2-11 -.-8 8.D, 2-12 -.-D 8.,

A*e#a e P#eDP"s2 CR ER P#e -.-BB B.C8, P"s2 -.-C 8.-C8

S2an!a#! !e*&a2&"n P#e -.-.C.88 -.D8B.C7 P"s2 -.-, -.799B.

C"e$$&'&en2 "$ Va#&an'e P#e -.ABB898 -..D7B,C P"s2 -.B -..8.A7C,DB

C1##en2 #a2&"A CR sho$s fluctuation in their ratio in ,--, to ,--C decreased from -.. to -.-A and goes to -.-B before merging. 'n "ost merger "erformance it is about -.-B in ,--D and $ent u" to -.-D in E1&'4 #a2&"A 'n "re merger "erformance it sho$s negati%e im"act it increased from B.,B in the year ,--, toA.A7 in ,--B and increased to C..D. 'n "ost merger "erformance starts from B.D7 in ,--D and $ent u" to9..B in ,-.- started decline to 8., in ,-.,.

;.2 Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2-1;.2.1 Ca9&2a) a!eB1a'+ #a2&"

Yea# CAR DER TATAR ECTA

P#e Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2--6 2--5 .A.79 .C.CA ..B..AC .C9 .CD .--A9 .--A7

P"s2 Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2-11 2-12 .7.CB .D.C, ..7D ,.A, .CA .CB .--,7 .--,B

A*e#a e

S2an!a#! !e*&a2&"n

C"e$$&'&en2 "$ *a#&a2&"n

C"##e)a2&"n P#e Vs P"s2 /. /. . /.

P#eDP"s2 P#e P"s2 P#e P"s2 P#e P"s2 CAR .B.9C .7.-A ...-A-D9 -.9,.,B7 -.-9B9D8 -.-A97-. DER ..A9C ,..C -.-ACACC -.,B-B.8 -.-,C9.A -....D,, TATAR -.C9C -.CAC -.--9-9. -.--9-9. -.-.,,7D -.-.A,.9 ECTA -.--AD -.--,8C -.---.B. -.---ACB -.-A9,.8 -..AAB.8

Ca9&2a) a!eB1a'+ #a2&"A 'n the year ,--D it $as about .A.79 increased to .C.CA in ,--7. 'n "ost merger "erformance it $as about .7.CB in ,-.. and $ent u" to .D.C, in ,-.,.
De32 EB1&2+ #a2&"A 'n the year ,--D it $as about ..B- decreased to ..AC in ,--7. 'n "ost merger

"erformance it $as about ..7D in ,-.. and $ent u" to ,.A, in ,-.,.
T"2a) A!*an'e 2" T"2a) Asse2 Ra2&"A 'n the year ,--D it $as about -.C9increased to -.CD in ,--7.

'n "ost merger "erformance it $as about -.CA in ,-.. and $ent u" to -.CB in ,-.,. EB1&2+ Ca9&2a) 2" T"2a) Asse2sA 'n the year ,--D it $as about -.--A9 increased to -.--A7 in ,--7. 'n "ost merger "erformance it $as about -.--,7 in ,-.. and decreased to -.--,B in ,-.,. ;.2.2 Mana e?en2 E$$&'&en'+ Ra2&"
P#e Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2--6 2--5 -.7,B . A7797C.-9 A97A--.78 P"s2 Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2-11 2-12 -.78, -.77B B-8,AA.89 B9A8B9.-7

Yea# TATDR AGR

TDR

.BBBA..-C

B7DDA.-,

CC-7-.7A

8-B-C.,C

A*e#a e P#eDP"s2 TATDR AGR TDR P#e -.78, AD7CBD.-, 79.C9.-AC P"s2 -.79D BA77B-.B C99BD.-7

S2an!a#! !e*&a2&"n P#e -.-CA9B .BB7..C, 88DCC.CC P"s2 -.-,,8,9 B988D.B7 A9C9.97,

C"e$$&'&en2 "$ *a#&a2&"n P#e -.-CCD8A -.-A9,-. -.8DD..D P"s2 -.-,A.A8 -..-DAC, -.-8C-9,

C"##e)a2&"n P#e Vs P"s2 . /. /.

T"2a) A!*an'e 2" T"2a) De9"s&2 Ra2&"A 'n the year ,--D T0T0R $as about -.7,B increased to . in ,--7. 'n "ost merger "erformance it $as about -.78, in ,-.. and $ent u" to -.77B in ,-.,. Asse2s G#"<2( Ra2eA Pre merger assts has been decreased from A7797C to A97A-- during the year ,--D to ,--7. Post merger "erformance of the &an! also increased during the year from B-8,AA in ,-.. to B9A8B9 in the year ,-.,. 0;R sho$s "ositi%e ratio for mergers. T"2a) De9"s&2 Ra2eA De"osits has also increased during "re merger as $ell as "ost merger during the year ,--D to ,-., from .BBBA. to 8-B-C. TDR sho$s "ositi%e ratio for mergers. ;.2.7 Ea#n&n > P#"$&2a3&)&2+
P#e Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2--6 2--5 -.,78 -.A,8 B.9.8B BBB.7B -..9 -.D8 -.998 ..,. A*e#a e P#eDP"s2 DPR ROA OITI IITI P#e -.A.. BA..,7 -.C.C -.77A P"s2 -.A-B C-...8 -..7C -.979 P"s2 Me# e# "$ Ban4 "$ Ra8as2(an <&2( ICICI Ban4 2-11 2-12 -.A.B -.,7B B9D.A. C,B.-. -.-, -.A9 -.9DC -.D-7 C"e$$&'&en2 "$ *a#&a2&"n 9#e -.-8D,. -.-BB9C7 -.7B9AD8 -.A-7-BD 9"s2 -.-B8C,-.DA -.-8BB97788 ..,87.88-.D -.-,.,7A-C, C"##e)a2&"n P#e Vs P"s2 /. . . .

Yea# DPR ROA OITI IITI

S2an!a#! !e*&a2&"n 9#e -.-,.,.A .7.A-B-, -.BD97-B -.A-8DDB 9"s2 -.-.B.B, A,.A.B9D -.,B9BD9 -.-.879.

D&*&!en! Pa+"12 Ra2&"A DPR has been decreased from -.,78 in ,--D to -.A,8 in ,--7. Post merger DPR sho$s decreasing ratio from -.A.B in ,-.. to -.,7B in ,-.,.

Re21#n "n Asse2sA 't sho$s B.9.8B during ,--D started increasing to BBB.7B in ,--7 in Pre merger and in Post merger increased to "ea! from B9D.A. to C,B.-.in ,-.. to ,-.,. O2(e# In'"?e 2" T"2a) In'"?eA 'n "re merger it sho$s -..9 in ,--D increased to -.D8 in the year ,-.-. 'n "ost merger "erformance of the 1'T' sho$s negati%e im"act for the mergers. In2e#es2 In'"?e 2" T"2a) In'"?eA ''T' has been increased from -.998 in the year ,--D to ..,. in ,-.- and in "ost merger ratio is about -.9DC in ,-.. to -.D-7 in ,-.,. 't sho$s a "ositi%e im"act on merging ban!. ;.2.= Le*e#a e Ra2&"
2--6 -... 8.B, A*e#a e P#eDP"s2 CR ER P#e -.., 8..D P"s2 -.., .8.,DC 2--5 -..A C.7B 2-11 -... .C.D8 2-12 -..A .8.9. C"e$$&'&en2 "$ *a#&a2&"n P#e -...9DC. -.-CB7,. P"s2 -...9DC. -.-A87-D C"##e)a2&"n P#e Vs P"s2 . /.

Yea# CR ER

S2an!a#! !e*&a2&"n P#e -.-.B.B, -.AA7B.. P"s2 -.-.B.B, -.8-.-B.

C1##en2 #a2&"A CR sho$s fluctuation in their ratio in ,--D to ,-.- increased from -... to -..A. 'n "ost merger "erformance it is about -... and -..A in ,-.. and ,-., same li!e before merging. E1&'4 #a2&"A 'n "re merger "erformance it sho$s negati%e im"act it decreased from 8.B, in the year ,--D to C.7B in ,--7. 'n "ost merger "erformance starts from .C.D8 in ,-.. and $ent u" to.8.9. in ,-.,. @. SUMMARY AND CONCLUSION This "a"er e)amines the "re and "ost merger financial "erformance of selected ban!s during ,--9 to ,-.-. 'n order to e%aluate the trend financial ratios ha%e been used to calculate the financial ratios of the &an!s. Then, the study, a""lying an e)"lanatory set of thirteen financial ratios, com"ares the differences in &an!s "ost/merger financial "erformance among the &an!s M=0 announcements. The financial ratios in this study are organized into four main grou"sF 3i4 Ca"ital 0de(uacy Ratios, 3ii4 Management @fficiency Ratios, 3iii4 @arnings and Profitability Ratios and 3i%4 ?e%erage Ratios.

The results re%eal that the &an! Mergers has been some results sho$s that gro$ing u", some sho$s about their some fluctuations "re and "ost Merger but the &an!. 5uture e)tensions of this study could e)amine the effects of the ty"e of the M=0s transaction 3conglomerate mergers and non/conglomerates4 not only $ith ratios, but also $ith stoc! returns and also $ith some other ratios to identify their gro$th rate. REFERENCES Allen D. and Boobal-Batchelo, V, 2005. The Role of Post-Crisis Bank er!ers in "nhancin! "fficienc# $ains and Benefits to the P%blic in the Conte&t of A De'elo(in! "cono)#* "'idence fro) ala#sia, Conference Proceedin! odelin! and +i)%lation +ociet# of A%stralia and ,e.ealand. /htt(*00---.)ssan1.or!.a%0)odsi)050(a(ers0allen22.(df3 De4on!, $a#le /20053. 6Does 4on!-Ter) Perfor)ance of er!ers atch arket e&(ectation7 "'idence fro) the 8+ Bankin! 9nd%str#, :inancial ana!e)ent, Vol ;2 ,o. 2, ((.5-25. $ar# $orton, atthias <ahl, Richard Rosen, 6"at or Be "aten* A Theor# of er!er =a'es er!ers and

>a# ehta ? Ra) <%)ar <akani /200@3, 6 oti'es for er!ers and AcA%isitions in the 9ndian Bankin! +ector B A ,ote on C((ort%nities ? 9)(erati'es >ens Da!endorff, ichael Collins and <e'in <ease# ,6Bank dere!%lation and acA%isition acti'it#* the cases of the 8+, 9tal# and $er)an# retrie'ed fro) ---.e)eraldinsi!ht.co)05;5E5FEE.ht) >ensen, .C. and R.+ R%back /5FE;3. 6The arket for Cor(orate Control* The +cientific "'idence, >o%rnal of :inancial "cono)ics, Vol 55 ((. 5-50. <-an, +i)on.,200G. 6Bankin! Consolidation :RB+: "cono)ic 4etter ,o 200G-:ederal Reser'e Bank of +an :ransisco /htt(*00---.frbsf.or!0(%blications0econo)ics0letter0200G0el200G-55.(df3 anoH Anand and >a!andee( +in!h, 69)(act of er!er Anno%nce)ents on +hareholders. =ealth* "'idence fro) 9ndian Pri'ate +ector Banks