2025, Vol. 6, Issue 2, Part I
Bank merger motivations: An examination of the key target bank characteristics
Author(s): Talawar Deepa Chandrappa and Chandramma M
Abstract: Despite the consolidation trend in the sector, mergers in Indian banks have not always brought about the expected improvements in financial performance. This paper examines the characteristics of target banks in the context of mergers, focusing on the motivations behind these mergers and their subsequent impact on their financial outcomes. The research makes a detailed study of four nationalized commercial banks: Canara Bank, Indian Bank, Punjab National Bank, and Union Bank of India. This research investigates whether significant changes in the financial performance indicators occurred before and after the merger. The study used statistical methods that included Analysis of Variance (ANOVA) to show that only a few indicators, such as capital adequacy and profit per employee, had little or no significant difference. Other indicators, such as asset quality, liquidity ratios, and sensitivity metrics, were subject to considerable change. Findings from this research suggest that bank mergers do not automatically ensure success, but the strategic integration process significantly influences the long-term financial health of the merged entities.
DOI: 10.22271/27084515.2025.v6.i2i.754
Pages: 824-830 | Views: 338 | Downloads: 53
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How to cite this article:
Talawar Deepa Chandrappa, Chandramma M. Bank merger motivations: An examination of the key target bank characteristics. Asian J Manage Commerce 2025;6(2):824-830. DOI: 10.22271/27084515.2025.v6.i2i.754
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