Impact of Mergers and Acquisitions on the Performance of Commercial Banks in India: A Study on Punjab National Bank

Abstract

The performance of the banking sector has a great responsibility in the growth and development of a nation's economy. The Indian banking sector is an integral part of the Indian financial system. It plays a vital role in the development and stability of the Indian economy. However, the Indian banking sector has witnessed serious distress, insolvency, vulnerability, and economic instability over the years. The present study has attempted to evaluate the impact of the mergers and acquisition programme on the performance of the Punjab National Bank. It research has examined the performance of the Punjab National Bank before and after the implementation of the merger and acquisition scheme using the capital adequacy, asset quality, management efficiency, earning ability, liquidity and sensitivity (CAMELS) framework and paired t-test. The result shows that the mergers and acquisitions programme has a positive and significant effect on the performance of the Punjab National Bank.