Market based mergers in Indian banking institutions

K. Ravichandran, Fauzias Mat-Nor, Rasidah Mohamad Said

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper analyses the efficiency and performance using CRAMEL-type variables, before and after the merger for the selected public and private banks which are initiated by the market forces. The results suggest that the mergers did not seem to enhance the productive efficiency of the banks as they do not indicate any significant difference. The financial performance suggests that the banks are becoming more focused on their retail activities (intermediation) and the main reasons for their merger is to scale up their operations. However it is found that the Total Advances to Deposits and the profitability are the two main parameters which are to be considered since they are very much affected by mergers. Also the profitability of the firm is significantly affected giving a negative impact on the returns.

Original languageEnglish
Pages (from-to)30-39
Number of pages10
JournalInternational Research Journal of Finance and Economics
Volume37
Publication statusPublished - Mar 2010

Fingerprint

Banking
Mergers
Profitability
Deposits
Intermediation
Financial performance
Market forces
Retail
Productive efficiency

Keywords

  • Bank mergers
  • CRAMEL-type variables
  • Efficiency
  • Performance

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Market based mergers in Indian banking institutions. / Ravichandran, K.; Mat-Nor, Fauzias; Mohamad Said, Rasidah.

In: International Research Journal of Finance and Economics, Vol. 37, 03.2010, p. 30-39.

Research output: Contribution to journalArticle

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