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Abstract

Banks are the lifeline of any economy and the economic growth of any country is dependent development of its banking sector. Public Sector Banks (PSBs) dominate the banking sector in India and have been critical to the growth of the country, post their nationalization in 1969. In order to further strengthen the Indian banking sector, Govt. of India (GoI) has been merging various PSBs to improve inter alia the financial profile of banks so as to augment their lending capacity. This paper evaluates the impact of mergers/acquisitions on the financial profile of two large PSBs, e.g., State Bank of India (SBI) and Bank of Baroda(BoB). For the purpose of the analysis, financial data for both the aforesaid banks over the last 5-9 years have been examined to ascertain if there has been any material change in their financial profile post-merger. The result points out the following:

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