Analysis and Impact of Financial Performance of Commercial Banks after Mergers in India

The Objective of this paper is to find out whether the banks have achieved performance efficiency during the post merger period namely in the areas of Capital Adequacy Ratio, Management Efficiency Ratio, Earnings and Profitability Ratio, Leverage Ratio. Basically, two methods was employed to compare pre-post merger performance, First, comparison and analysis of ratios are used to compare the performance of local banks during the pre-merger period (2003- 2006) and post-merger period (2008-2011). Second, paired sample t-test determines the significance differences in financial performance before and after the merger activity.