FINANCIAL PERFORMANCE PRE & POST MERGER OF ICICI BANK

Sadhana Prajapati

Abstract


In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main aspects of India's banking growth story.

The Internationally Banking scenario has been shown major changes in the past decades of the Mergers and Acquisitions. Due to the financial system deregulation, entry of new players and products with advanced technology, globalization of the financial markets, changing customer behaviour, wider services at cheaper rates, shareholder wealth demands etc., have been on rise.

This study shows the impact of Mergers and Acquisitions in the Indian Banking sector as sample to examine the as to whether the merger has led to a profitable situation or not. For this purpose, a comparison between pre and post merger performance in terms of Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity, Earning per Share, Debt Equity Ratio and Dividend Payout Ratio has been made in the case of ICICI Bank. ICICI Bank Net Profit and Return on Assets have showed an improvement after the merger but in case of the other parameters there is no significant improvement in the performance. In the initial stage, after merging, there may not be a significant improvement due to teething problems but later they may improve upon.


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ISSN : 2251-1555