Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks
Journal of World Economic Research
Volume 2, Issue 5, October 2013, Pages: 95-103
Received: Oct. 22, 2013; Published: Nov. 10, 2013
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Authors
Sriprakash Srivastava, Faculty of Commerce, Banaras Hindu University, Varanasi, (U.P), INDIA
Brajesh Kumar Tiwari, Department of Management Studies, Rajendra Prasad College of Management, Azamgarh (U.P), INDIA
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Abstract
A banking merger is just the same as the merger of two companies except that it involves banks. Mergers and Acquisitions (M&A) in the banking sector may be in the form of amalgamation, absorption, consolidation, acquisition or take over. The important point in the bank merger is that banking activities of the participants will always be regulated. In the present study efforts have been made to analyse the effects of M&A on the Financials of the Merger of Nedungadi Bank Ltd. (NBL) With Punjab National Bank (PNB) before and after merger. For this purpose various variables namely, capital, deposits, investments, advances, interest earned, interest paid, total income, total expenditure and net profit have been identified. In the analysis of variables figures for four year prior to merger and figures of variables for four years after the merger have been taken. Figures prior to merger are the total of value of variables of both amalgamating bank (the bank which loses its identity) and amalgamated bank (the bank which continues its existence). The result of regression equation has been found effective after merger of PNB and NBL from the point of view of capital, deposits, advances, interest earned and total income. In the case of investments, fixed assets, interest expenditure, total expenditure, net profit and total assets result of regression equation has been found ineffective. The Null Hypothesis is rejected in all variables except capital, fixed assets and interest expenditure.
Keywords
Merger, Acquisition, Capital, Deposits, Investments, Advances, Fixed Assets, Interest Earned, Interest Paid, Total Income, Total Expenditure, Net Profit and Total Assets
To cite this article
Sriprakash Srivastava, Brajesh Kumar Tiwari, Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks, Journal of World Economic Research. Vol. 2, No. 5, 2013, pp. 95-103. doi: 10.11648/j.jwer.20130205.13
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