scholarly journals Post-Merger Financial Performance of ICICI Bank

2020 ◽  
Vol 7 (4) ◽  
pp. 23-35
Author(s):  
Vandana Gandhi ◽  
Vishal Mehta ◽  
Prashant Chhajer
Keyword(s):  
Mergers And Acquisitions ◽  
Private Sector ◽  
Financial Performance ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Geographic Spread ◽  
Scattered Spectrum

India has witnessed Mergers and Acquisitions across sectors and the most talked about mergers are those in the Banking sector. The banking sector attracts more attention because of the wide geographic spread and the scattered spectrum of stakeholders. Post liberalization banking sector has grown by leaps and bounds and has also seen a lot of mergers and acquisitions. ICICI bank is one of the biggest players among the private sector banks, adopted the merger and acquisition route for expansion. It witnessed four mergers and the same have been studied in this paper. Evaluation of the mergers has been done using the CAMEL model. For the study, three years’ pre-merger data and three years’ post-merger data have been taken into consideration. It was found that there was no significant improvement in the financial performance of ICICI Bank post these mergers.

scholarly journals Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan

2014 ◽  
Vol 6 (4) ◽  
pp. 177-190
Author(s):  
Qamar Abbas ◽  
Rashid Saeed . ◽  
Ehsan-Ul-Hassan . ◽  
Muhammad Shahzad Ijaz .
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Business Environment ◽  
Study Data ◽  
Financial Statement ◽  
Acquisition Performance ◽  
Significant Difference ◽  
Insignificant Difference ◽  
The Impact

Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment. This strategy also has much importance in Pakistan mostly in banking sector. Therefore, the objective of the study is to assess the impact of M&A on the financial performance of banks in Pakistan. The accounting and financial data of 10 banks were used in this study. Data was taken from the financial statement analysis (FSA) by State Bank of Pakistan from the period of 20062011. For the analysis of pre and post Merger and Acquisition performance 15 financial ratios were used in the study. To compare the results Paired sample t-Test was used to measure the significant difference between pre and post M&A financial performance. The overall results show that there is no significant difference in financial performance. It is concluded that there is insignificant difference between pre and post M&A performance of banks in Pakistan.

scholarly journals A Study on the Growth Policies and Profitability of Select Mergers and Acquisitions in India

2020 ◽  
Author(s):  
A R SINDHU ◽  
S. MADHAVAN
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Secondary Data ◽  
Market Value ◽  
Merger And Acquisition ◽  
Research Paper ◽  
Annual Reports ◽  
Foreign Investor ◽  
Net Worth ◽  
Equity Ratio

The study aims to investigate the growth percentage in Earning per Share, Net worth, Debt equity Ratio and Market value of companies starting from Jan 2014 to March 2014, which is carried out on a sample of 22 companies, who under vent M&A. It is assumed that Merger and Acquisition (M&A) develop the company financial performance, organisational competitiveness and it is an easier way to internationalisation also. 2014 was a year for very strong foreign investor interest in India, while the economic and growth sentiments are enormously positive. The present research paper was based on Secondary data from the CMIE’s Prowess database and Annual Reports of the companies concerned. Finally from the results it is concluded that mergers have a significant change in enhancing the profitability of acquirer companies.

scholarly journals Financial Performance of Banks in India: A Study of Selected Private Sector Banks

2020 ◽  
Vol 1 (1) ◽  
pp. 45-52
Author(s):  
Vasani Sureshbhai Vithalbhai
Keyword(s):  
Private Sector ◽  
Financial Performance ◽  
Banking Sector ◽  
Good Condition ◽  
Banking System ◽  
Secondary Data ◽  
Jammu And Kashmir ◽  
Significant Difference ◽  
Net Profit ◽  
Need To Evaluate

Purpose: This study aims to evaluate the performance of selected private sector Banks in India. The aim is also to study the profitability performance of these selected banks. Approach/Methodology/Design: Eight private Banks were selected as a sample for the study. The statistical tools employed in the study include Minimum and Maximum Net Profit Ratio, Descriptive Statistics and One-Way ANOVA test for the evaluation of performance of Banks. The period for the study is from 2011-12 to 2018-19, and this study is totally based on secondary data. Findings: The results of the study reveal that there is a significant difference of Net Profit of the selected banks. The financial performance of HDFC Bank is continuously in a good condition due to the high profit earned and the proper management that is employed. The results indicate that Yes Bank is in a deteriorating financial position because of governance issues, false assurance to customers, non-serious investors, non market-led revival in sight, outflow of liquidity, and non-disclosure practices. Axis Bank and ICICI Bank are slowly declining within the market. Jammu and Kashmir Bank suffered losses in the year 2016-17 due to the tune of Rs 16,000 crores during the five months long unrest in the Kashmir valley. Practical Implications: In today’s scenario, most of the banks have more Non-Performing Assets. Due to this condition, many banks go to liquation and merger/acquisition. This paper attempts to examine the current conditions of selected private sector banks in India, assisting in presenting statistical analysis that will be of use to investors as well as management teams of the banks. Originality/value: Nowadays, Banking sector is one of the fastest growing sectors and huge funds are invested in banks. The banking system is becoming more complex and therefore there is a strong need to evaluate the performance of the banks. The originality in this study lies in the attempt to provide up-to-date assessment of eight top banks in India.

Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

2013 ◽  
Vol 16 (04) ◽  
pp. 1350022 ◽  
Author(s):  
Dongyun Lin ◽  
James Barth ◽  
John Jahera ◽  
Keven Yost
Keyword(s):  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Bank Regulation ◽  
Merger And Acquisition ◽  
Bank Mergers ◽  
Regulatory Factors ◽  
Cross Border ◽  
Country Specific ◽  
Unique Dataset

This paper evaluates factors that encourage or impede cross-border mergers and acquisitions in banking. The effects of bank specific features, as well as bank regulatory factors, from both target and acquiring banks' perspectives, are estimated. Three comprehensive databases are combined to provide a unique dataset to study cross-border merger and acquisition activities of banks. Banking sector regulatory variables included make this study among the first to empirically and comprehensively analyze the interrelationship between bank regulation and cross-border bank mergers and acquisitions. The results indicate that both bank characteristics and country specific characteristics are important determinants of banks' cross-border merger and acquisition activities.

scholarly journals An Assessment of Financial Performance and Service Facility Improvement after Merger and Acquisition of Financial Institutions of Nepal

2021 ◽  
Vol 2 (2) ◽  
pp. 16-25
Author(s):  
Ganesh Bajgai ◽  
Radheshyam Pradhan
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Financial Institutions ◽  
Financial Stability ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Public Confidence ◽  
Acquisition Process ◽  
The Impact

Merger and acquisition are one process to integrate the two or more similar types of institutions into one institution. Basically, more banking sectors are gone in merger and acquisition in Nepal. Nepal Rastra Bank has introduced the Merger by law – 2068 BS with the objective of reducing the number of BFIs, enhancing financial stability and promoting public confidence on the banking sector, which encouraged and compelled the banking sectors to proceed the merger and acquisition process for their long-term sustainability. Considering this status, the study was conducted to identify the impact of merger and acquisition on financial performance and service quality of financial institutions of Nepal. The study was conducted covering the category A and B bank which were established after merger and acquisition process. It was a cross-sectional study conducted among the 385 employees of banking sectors. The result shows that the financial performance and service quality of both types of banks (category A and B) was significantly difference in post-merger situation because the p value of t-test was less than .05 significant level.  

scholarly journals Revocation of a Banking License as an Instrument for Regulating Merger and Acquisition Transactions

2019 ◽  
Vol 8 (4) ◽  
pp. 8881-8884
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Additional Information ◽  
Earnings Per Share ◽  
State Participation ◽  
License Revocation ◽  
The Cost ◽  
The Impact

The article analyzes the dynamics of the indicators of the merger and acquisition market in the banking sector, as well as the indicator of revocation of banking licenses. The analysis has shown the outperformance of bank decrease in relation to bank acquisition over the same period, which indicates a significant impact of license revocation on the merger and acquisition market. The article assesses the impact of the merger and acquisition market on the structure of proportional regulation in favor of banks with universal licenses. An increase in the concentration of capital is observed, especially in banks with state participation. The article investigates the methods of calculating the cost of mergers and acquisitions. The authors propose to add two more factors to the already known factors of change in earnings per share due to mergers and acquisitions: the type of license revoked by the regulator as a result of the rehabilitation and goodwill, which should be considered in the merger cost using additional coefficients. This will allow the merger cost to be more accurately determined and provide the investor with additional information for decision-making.

scholarly journals Mergers, Acquisitions, and Corporate Financial Performance in the Financial Technology Inclined Quoted Insurance Companies in Nigeria

2021 ◽  
Vol 18 ◽  
pp. 838-845
Author(s):  
Ogunwale Olurotimi ◽  
Ikpefan Ochei ◽  
Isibor Areghan ◽  
Achugamonu Uzoma ◽  
Folashade Owolabi ◽  
...  
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Banking Sector ◽  
Wealth Effects ◽  
Insurance Companies ◽  
Corporate Financial Performance ◽  
Insurance Sector ◽  
Unit Increase ◽  
Drastic Increase ◽  
The Face

The research empirically examines effect of Mergers and Acquisitions on Corporate Financial success of Quoted Insurance Companies in Nigeria. It has become expedient in the face of the drastic increase in Mergers and Acquisitions activity in recent decades and the fact that there has been very little empirical evidence of positive wealth effects and particularly the success of M&A in the insurance sector. This has arisen because most studies in Nigeria have rather focused on the banking sector. Data was obtained from Quoted Insurance Companies from 2003 to 2016 and the Regression Techniques were employed in the study. The result indicated that there exists a positive effect of M&A on Corporate Financial Performance of Insurance Companies. It revealed that a unit increase in merger led to about 4% increase in the Corporate Financial Performance of the merged firms. In effect, a unit increase in Earnings after Merger actually led to about 8% increase in the Corporate Financial Performance of the same firms. The study hereby recommend that Insurance Companies should look at issues of Claims settlement, Product Development and Branding while the National Insurance Commission (NAICOM) should look into the education of insurable clients as well as appropriate polices that would drive Insurance penetration in Nigeria.

scholarly journals “Environmental Performance Reporting in Commercial Banks of India: Exploring Association with Financial Performance”

2019 ◽  
Vol 8 (12) ◽  
pp. 4390-4395
Keyword(s):  
Private Sector ◽  
Financial Performance ◽  
Environmental Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Annual Reports ◽  
Extensive Literature ◽  
Environmental Practices ◽  
Performance Reporting

Environmental issues such as global warming and subsequent climate changes have stimulated the need for environmental performance reporting by organizations. Extant literature highlights that adoption of environmental practices is expected to influence financial performance of organizations. Despite extensive literature available on relationship between environmental performance and financial performance, results still remain indecisive. This research attempts to investigate environmental performance reporting in the context of commercial banks operating in India and compare the relationship between environmental performance and financial performance on a sample of 21 public and 20 private sector banks for a period of five years (2013-14 to 2017-18) using content analysis and linear regression. Secondary data was collected from annual reports, corporate social responsibility reports, business responsibility reports and sustainability reports of respective banks. Results obtained evince no considerable association amid environmental performance and financial performance of public sector banks functioning in India. Correspondingly, no considerable association was found amid environmental performance and return on equity of private sector banks. Conversely, positive significant relationship was observed between environmental performance and return on assets of private sector banks. Research provides an insight to banking sector to incorporate environmental practices in core business operations to improve profitability.

scholarly journals The Role and Impact of Merger & Acquisition of Banking Sector in Pakistan

2019 ◽  
Vol 3 (3) ◽  
pp. 113-121
Author(s):  
A. Kishwar ◽  
A. Ullah
Keyword(s):  
Mergers And Acquisitions ◽  
Interest Rates ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Small Sample ◽  
Theoretical Research ◽  
Before And After ◽  
Banking Institutions ◽  
Acquisition Processes ◽  
The Impact

Authors: Kishwar Ali, School of Finance, Zhongnan University of Economics & Law, Wuhan, China Atta Ullah, School of management, Huazhong University of Science and Technology, Wuhan China Pages: 113-121 DOI: http://doi.org/10.21272/fmir.3(3).113-121.2019 Download: Views: Downloads: 40 54 Abstract The paper summarizes the arguments and counterarguments in the scientific discussion on determining the effects of mergers and acquisitions for banking institutions. The purpose of this article is to conduct an empirical study to identify the nature of the impact of mergers and acquisitions on Pakistan’s financial sector performance. The research in the article is carried out in the following logical sequence: a thorough literature review on the analysis of key aspects of mergers and acquisitions and their impact on the financial and economic performance of banks before and after their practical implementation; the historical basis of the experience of mergers and acquisitions caused by various economic factors, such as: GDP growth, interest rates on loans, monetary policy; financial analysis of bank profitability, solvency and liquidity indicators before and after the merger and acquisition was conducted. Five commercial banks of Pakistan that were involved in the merger and acquisition processes were selected as the subject of study. The study period is presented before and after the merger and includes two years before the acquisition report and two years after the acquisition announcement by analysis of financial ratios of liquidity, solvency and profitability. The results of empirical and theoretical research have shown that there is a positive relationship between merger and acquisition processes and liquidity ratios of banking institutions; and – the negative impact of such processes on banks’ profitability and solvency in the short term. The author states that the main limitation of the study is the unavailability of financial data until 2006 and the use of a small sample size and a low likelihood of data collection technique, which is limited by a certain type of people and lack of generalization. Keywords: merger, acquisition, bank, solvency risk, liquidity, profitability.

Sign in / Sign up

Export Citation Format

Share Document