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Impact of Merger and Acquisition on Performance of Indian Overseas Bank:

An Analysis

1
Dr. Veena K.P.
Associate Professor, Dept. of Master of Business Administration,
Visvesvaraya Technological University, Post Graduate Centre,
Mysore Regional Centre, Mysuru 570019.
2
Prof. S.N. Pathi
Professor, Dept. of Business Administration,
Berhampur University, Berhampur- 760007.
Abstract:
The Banking sector has played a top performance compared to the other sectors in India. Banks opted for mergers
and acquisitions (M&A) as tactical means of one or two more banks become one single restructuring.The study
focused on Indian Overseas Bank merged with Bharath Overseas Bank and IOB take over 131 branches of
BharathOverseas Bank in 2007-08. After the merger Indian Overseas Bank improve their expansion and banking
efficiency therefore IOB at present become a larger public sector bank in India. The main objective of the study is to
highlight the theoretical background of merger and acquisition and profile of IOB. The study also analyses the
impact of pre and post-merger performance of Indian Overseas Bank (IOB). The study is based on secondary
sources and to measure the reliability of data applied descriptive statistics and also T-test has been applied. To
conclude, after merger there is positive improvement in net profit, operating profit, total income, earning per share,
deposits, loans and advances, borrowings, investments, total assets and other income etc.
Key Words: Pre Merger, Post Merger, Bank efficiency, Indian overseas Bank, Impact.
Introduction: Banking sector plays an base and cost rationalization, man power
imperative role in the economic growth and efficiency (Gupta,2015).Therefore numerous
development of a nation. Globalization, studies, which confirm the banking industry
deregulation of economies coupled with needs to systematically address to measure
technological development has changed the the pre and post-merger performance on
banking landscape dramatically. With the fast financial efficiency of banking sector.
changing environment, the banking sector is
The consolidation of business entities is a
resorting to the process of consolidation,
world-wide phenomenon. One of the tools for
corporate restructuring and strengthening to
consolidation is mergers and acquisitions.
remain efficient and viable. For this, Mergers
The quest for growth is a major driving force
and Acquisitions have become the preferred
behind mergers and acquisitions. The
strategy for growth in the size of banks which
mergers and acquisitions in financial sector
in turn play a significant role in entering the
of India appear to be driven by the objective
global financial market. Besides Mergers and
of leveraging the synergies arising out of the
Acquisitions are widely used for achieving
consequences of M&A process. However,
higher market share, overall productivity and
such structural changes in the financial and
profitability, expanding branch networks,
profitability efficiency, policy frame work
strengthen their capital
implications. It is evident from various
mergers and amalgamations done by the

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Bharat overseas bank merged with Indian other hand, when one bank takes over
overseas bank in 2007.The main motive of another bank and clearly well-known itself as
bank mergers is to enhance the efficiency of the new owner, this is called as Acquisition.
banks, but the increase in operating profits (if The banks must follow the legal procedure of
any) is partly offset by revaluation effects in mergers and acquisitions which is given by
the course of the restructuring process. Also, the Reserve Bank of India, SEBI, Indian
history has failed to find convincing evidence Companies Act and Banking Regulation Act
of the advantages of mergers and acquisitions 1949. Mergers and acquisitions is not a short
on banks and thus it questions the usefulness term process, it takes time to take decisions
of M&As. Thus, further research is necessary after examining all the aspects. Indian
to disentangle the specific conditions under Corporate Sector had stringent control before
which merged banks thrive or fail (Chandra, liberalization but, the Government has
2012). initiated the Reform after 1991 which
List of Merger and Acquisitions (M&As) resulted in theadaptation of the different
in Indian Banking Sector: A Merger is a growth and expansion strategies by the
combination of two or more bank into one Companies. The following table shows that
bank or it may be in the form of one bank list of merger and acquisition in Indian
being merged into the existing bank. On the banking sector from 2003 onwards.
Name of the transferor bank Name of the transferee bank Year of Merger
Nedungadi Bank Ltd. Punjab National Bank 2003
South Gujarat Local Area Bank Ltd. Bank of Baroda 2004
Bank of Punjab Centurion Bank 2005
Ganesh Bank of Kurundwad Ltd. Federal Bank Ltd. 2006
Bharath Overseas Bank Indian Overseas Bank 2007
Centurion Bank of Punjab HDFC bank Ltd. 2008
Bank of Rajasthan ICICI Bank 2010
ING Vysya Bank Kotak Mahindra Bank 2014
Source: Compiled from report on Trends and Progress, RBI various issues.
An Overview of Indian Overseas Bank: portfolio; loans to small and marginal
Indian Overseas Bank (the Bank) is engaged farmers; loans to non-corporate farmers, and
in the business of banking. The Bank's microfinance. Its personal banking services
segments include Treasury, include saving bank, current account, term
Corporate/Wholesale Banking, Retail deposit, retail loans, and mortgages and
Banking and Other Banking Operations. Its depository services. It offers merchant
operations consist of domestic deposits; banking for issues, debenture trustee,
domestic advances; foreign exchange dividend/interest warrant and others. It also
operations; investments; micro, small and offers Internet and mobile banking services.
medium enterprises, including MUDRA
Indian Overseas Bank (IOB) is a
Loan Scheme; retail banking, including
major public sector bank merged with
ArogyaMahila Savings Bank Accounts; Mid
Bharath Overseas Bank in March 31st
Corporate department; agricultural credit 2007.The expansion of IOB3700 domestic

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branches, including 1150 branches in Tamil modelthat incorporates some key financial
Nadu, 3 extension counters, and eight variables in a model that regress interest rates
branches and offices overseas as of 30 on these financial variables. The study found
September 2014. Indian Overseas Bank has evidence to support the thesis that the
an ISO certified in-house Information consolidationprogramme-induced mergers
Technology department, which had and acquisitions in the banking industry had
developed the software that its branches used improved competitiveness andefficiency of
to provide online banking to customers the borrowing and lending operations of the
earlier. The bank has achieved 100% Nigerian banking industry.
networking status as well as 100% CBS Joshua (2011) evaluated the Mergers and
status for its branches. IOB also has a acquisitions in the Nigerian bankingsector.
network of about 3300 ATMs all over This paper used gross earnings, profit after
India.IOB has branches in Singapore, Hong tax and net assets of the selected banks
Kong, Colombo, Seoul, and Bangkok. It has asindices to determine financial efficiency by
representative offices in Guangzhou, comparing the pre-mergers and
Vietnam, and Dubai. IOB also is part-owner acquisitionsindices with the post mergers
of a joint-venture bank in Malaysia. The net and acquisitions indices for the period. It was
profit for the quarter ended 30 June 2015 found that thepost mergers and acquisitions
stood at INR 272 Crores. The Business period was more financially efficient than the
touched INR 4,20,739 Crores(Growth 8.16%) pre-mergers andacquisitions period.
for the quarter ended 30 September 2015. However, to increase banks financial
Deposits stood at INR 2,39,223 efficiency, the study recommendthat banks
Crores(Growth 12.47%), CASA stood at should be more aggressive in their profit
23.76%, Advances stood at INR 1,81,515 drive for improved financial position toreap
Crores(Growth 2.96%) Operating Profit for the benefit of post mergers and acquisitions
Q2 14-15 is INR 729 Crores.Finally this bid.
study coversthree dimensions such as growth, Kithitu(2012),this study was undertaken on
financial and profitable efficiency in pre and Role of Mergers and Acquisitions on the
post merger performance of Indian overseas Performanceof Commercial Banks in
bank. Kenya. the main objectives of the study is
Review of Literature: todetermine the profitability of merged
Oladepo (2010), this study focused on institutions pre and postmerger and
Mergers & Acquisitions and Efficiency of acquisitions; to determine whether
Financial Intermediationin Nigeria Banks: mergers/acquisitionshave impact on
An Empirical Analysis. This paper fills the shareholders value and to determine the
gap by investigating the effects of mergers effect ofmergers/acquisitions on management
and acquisitions on theefficiency of financial efficiency. The study used accounting ratios
intermediation in the Nigerian banking to analyze the financialperformance of the 21
industry. This is carried out by estimating a banks under study. For the pre-

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merger/acquisition period, ratios for both the adequacy, size and performance of
acquirers and the targetswere examined in mergingbanks, listed on Karachi Stock
getting an indication of the relative Exchange (KSE), which executedat least one
performanceof the acquirer and the target. merger during 2006-2010 has been
Kumar (2013), this study was undertaken on discovered usingDougherty model. This
impact of bank mergers on the efficiency of results showan insignificant impact of
banks: A study of merger of Bharat Overseas mergers on performance of banks and
Bank with Indian Overseas Bank .In the ttestproves that performance of each bidder
paper the attempt is made to compare the pre- bank has not improvedsignificantly after
merger and post-merger performance of mergers
Bharat Overseas Bank and Indian Overseas Patel(2016), this study was carried on
Bank by comparing different efficiency Mergers and acquisition the game of profit
parameters like Profit Per employee, and loss ;A study of Indian banking sector.
Business Per Employee, Investment and the purpose of this paper is to examine the
Advances, Interest Income, Return on Assets, comparative position of pre & post-merger
NPAs etc. The study concluded that after financial performance of selected banks.
merger there is improvement in all the Present study highlights the major gaps in
parameters of the banksand the impact of financial performance compared through
consolidation on different profitability and Economic Value added. Finally, evidence is
efficiency parameters of the banks. presented that proper analysis before the
Moctar (2014),carried the study to examine merger deal can improve banks
the impact of mergerand acquisition on the performance. Because of the chosen research
performance West African Banks.Two approach, the research results may not be
groups of banks have been used as case generalizable for all banks. The paper
study: the first section or group consists of includes implications for top management of
Access bank plc Nigeria and SG-SSBGhana banks in designing merger deal, which can be
two banks that have experienced M&A and beneficial for them to have synergy gain in
thesecond group consists of Zenith bank. The terms of financial, stock performance and
study reveals that in terms ofliquidity, M&A wealth maximization of wealth.
improves the situation of the banks in Objectives:
shortand long term. It also reveals that 1. To highlight the theoretical
performance andinvestment variables background of pre and post-merger
decrease in the period of M&A of banks. performance of bank;
Haider(2015), this study was undertaken on 2. To examine the impact and merger and
Impact of mergers on performance of acquisition on the performance of
banking sector of Pakistan. This study Indian Overseas Bank (IOB).
empirically examines the impact of mergers 3. To analyse the pre and post-merger
onperformance of the banks in Pakistan. The performance of financial efficiency in
link between liquidityrisk, leverage, capital Indian overseas bank (IOB).

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4. To assess the pre and post-merger Pre and Post-merger of IOB: Growth
performance of profitability efficiency Performance: Table No.1 indicates that pre
in Indian overseas bank (IOB). and post-merger performance of growth
5. To offer findings and suggestions in efficiency of Indian Overseas Bank. In the
the light of the study. context of growth efficiency of bank are
Research Methodology: Research is measured in four parts such as, number of
considered as journey from unidentified to branches and ATMs, total assets and net
identified facts. Methodology is the way to worth. In the context of pre-merger
solve the research problem systematically. performance of the bank, the overall number
The required secondary data constitutes the of branches i,e., 4633 and after that IOB was
main source of information, suitable for the merged with Bharath Overseas Bank, the
purpose of the present study. In this study we overall number of branches were increased
have selected Indian Overseas Bank for i,e.,22,540following with this highest number
analysis of data. The sources of secondary of branches were recorded in post-merger
data were collected from Annual reports of performance of the bank numbering, 3397 in
Indian Overseas Bank and annual reports of 2015-16 as against lowest number of
Reserve Bank of India (RBI). The branches were recorded in pre-merger
information for this study is gathered for the performance of the bank numbering, 1496 in
time of 2004-05 to 2015-16. And also various 2004-05. Further the pre and post-merger
national and international journals, periodic performance, the overall number of onsite
publications, working papers, books, articles, and offsite ATMs were 832 and 14765 ATMs
thesis, and dissertation work on pre and post networks respectively. The highest number of
merger performance of Indian banking ATMs were recorded in post-merger
sector. For the purpose data analyze applied performance numbering, 3951 in 2015-16 as
descriptive statistics, independent paired against the lowest number of ATMs were
sample T-test to known the significant recorded in pre-merger performance
relationship between two variables and also numbering 170 in 2004-05.In the context of
to prove the hypotheses of the study to pre and post-merger performance, the overall
measure the reliability of data. total assets were stood at Rs. 83482.18 crores
Hypotheses: and Rs. 1638433 crores respectively. Out of
i. Null (H0): There is no significant that the highest amount of total assets were
difference between pre-merger and post- found in post-merger performance amounting
merger performance of Indian overseas to Rs. 758587.30 crores in 2015-16 as against
bank.(Growth, financial, profitability). the lowest amount of total assets were found
ii. Alternative (H1): There is a significant Rs. 11883.85 crores in 2005-06.Further, the
difference between pre-merger and post- overall pre and post-merger performance of
merger performance of Indian overseas net worth of the bank amounted to Rs.
bank. (Growth, financial, profitability). 1634.04 crores and Rs. 7548.6 crores
respectively. Out of that the highest amount
Analysis and Interpretation:

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of net worth were found in post-merger 08.To conclude, growth efficiency of bank,
performance amounting Rs. 1807.26 crores in that post-merger performance was high or
2015-16 as against the lowest amount of net better compared to the pre-merger
worth were found Rs. 512.37 crores in 2007- performance in IOB.
Table No.1: Pre and Post-Merger of IOB: Growth Performance
(Rs. in Crores)
Year Pre-Merger
No. of Branches No. of ATMs Total Assets Net Worth
2004-05 1496 170 12064.02 544.80
2005-06 1513 280 11883.85 544.80
2006-07 1624 382 59534.31 544.80
Total [A] 4633 832 83482.18 1634.4
Mean 15.44 8.12 27.85 13.28
Standard Deviation 26.32 10.62 16.39 11.35
Independent Sample T- T=1.544
Test P=0.002
Post-Merger
2007-08 1781 493 82826.28 512.37
2008-09 1913 623 113595.78 544.80
2009-10 2002 927 121073.39 564.21
2010-11 2184 1577 131096.58 544.80
2011-12 1715 1043 178784.27 618.74
2012-13 2902 1883 219648.17 796.99
2013-14 3265 1726 274904.84 924.09
2014-15 3381 2542 516503.47 1235.34
2015-16 3397 3951 758587.30 1807.26
Total [B] 22540 14765 1638433 7548.6
Grand Total [A+B] 27173 15597 1721915.18 9183
Mean 12.50 11.64 26.63 8.38
Standard Deviation 7.20 21.86 32.14 14.34
Independent Sample T- T=2.561
Test P=0.015
Source: Annual Reports of Indian Overseas Bank.
Independent sample T-test shows, that to hypothesis is accepted. Further to test the
test the significant difference between the significant difference between the mean
mean differences among pre-merger differences among post-merger performance
performance of growth efficiency of Indian of growth efficiency in Indian overseas bank.
overseas bank.The highest mean and standard The highest mean and standard deviation
deviation were found in number of branches were found in total assets category around
and total assets category around 27.85 and 26.63 and 32.14 respectively. The calculated
26.32 respectively. The calculated P value P value (Sig 2-tailed) is 0.015, which is less
(Sig 2-tailed) is 0.002, which is less than the than the Alpha Value of 0.05, which states
Alpha Value of 0.05, which states that the that the null hypothesis to be rejected and
null hypothesis to be rejected and alternative alternative hypothesis is accepted.

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Pre and Post-merger of IOB: Financial merger performance amounted to Rs.
Performance: Table No.2 represents that pre 19771.39 crores in 2004-05.In the context of
and post-merger performance of financial pre and post-merger performances, the
efficiency in Indian Overseas Bank. In the overall loans and advances were found to be
context of financial efficiency of bank are Rs. 92539.59 crores and Rs. 994407.91
measured in terms of deposits, investment, crores respectively. The highest amount of
loans and advances and borrowings. In the loans and advances were found in post-
context of pre and post-merger performance, performance was found to be Rs.181081.01
the overall deposits were found to be Rs. crores in 2013-14,as against the lowest
154464.20 crores and Rs. 1503994.12 crores amount of loans and advances were found in
respectively. The highest amount of deposits pre-merger performance amounting to Rs.
were found in post-merger performance 20274.13 crores in 2004-05.Further the
amounted to Rs.246048.72 crores in 2014- overall pre and post-merger performances in
15,as against the lowest amount of deposits borrowings were found to be Rs. 4216.37
were found in pre-merger performance crores and Rs. 154773.60 crores respectively.
amounting to Rs. 41482.57 crores in 2004- The highest amount of borrowings were
05. Further the overall pre and post-merger found in post-performance amounted to
performance of investments were found to be Rs.27183.31crores in 2014-15,as against the
Rs. 61734.97 crores and 493190.10 crores lowest amount of borrowings were found to
respectively. The highest amount of be in pre-merger performance amounted to
investments were found in post-merger Rs. 590.68 crores in 2004-05.To be conclude,
performance amounted to Rs. 81732.79 there is a positive impact of merger and
crores in 2014-15,as against the lowest acquisition on the bank with regard to
amount of investments were found in pre- financial efficiency.
Table No.2: Pre and post-merger performance of financial efficiency in IOB
(Rs.in Crores)
Year Pre-Merger
Deposits Investments Loans and advances Borrowings
2004-05 41482.57 19771.39 20274.13 590.68
2005-06 44241.23 18605.60 25205.18 729.47
2006-07 68740.41 23417.98 47060.28 2896.22
Total [A] 154464.20 61794.97 92539.59 4216.37
Mean 5.14 6.21 13.09 11.74
Standard Deviation 16.08 25.31 24.32 27.31
Independent Sample T- T=4.328
Test P=0.023
Post-Merger
2007-08 68746.19 24410.54 47902.72 3072.22
2008-09 100115.88 31553.65 75809.54 6548.28
2009-10 110794.71 37881.26 80782.48 8989.20

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2010-11 145228.75 48835.60 113791.47 19355.40
2011-12 178434.18 55929.83 143272.64 23613.85
2012-13 202135.35 61987.86 164.366.48 23322.86
2013-14 227976.08 71232.28 181081.01 24456.04
2014-15 246048.72 81732.79 179041.33 18232.41
2015-16 224514.23 79626.29 172726.72 27183.31
Total [B] 1503994.12 493190.10 994407.91 154773.60
Grand Total [A+B] 1658458.32 554985.07 1086947.5 158989.97
Mean 6.17 5.44 11.05 17.09
Standard Deviation 19.37 20.76 22.72 29.16
Independent Sample T=7.209
T-Test P=0.001
Source: Annual Reports of Indian Overseas Bank.
Independent sample T-test shows the measured in terms of net profit, operating
significant difference between the mean profit, total income and earnings per share. In
differences among pre-merger performance the context of pre and post-merger
of financial efficiency in Indian overseas performance, the overall net profits were
bank .The highest mean and standard found to be Rs. 1947 crores and Rs. 7076.67
deviation were found in loans and advances crores respectively. The highest amount of
and borrowings category around 13.09 and net profit were found in post-merger
27.31 respectively. The calculated P value performance amounted to Rs. 601.74 crores
(Sig 2-tailed) is 0.023, which is less than the in 2013-14,as against the lowest amount of
Alpha Value of 0.05, which states that the net profit were found in pre- merger
null hypothesis to be rejected and alternative performance amounted to Rs. 513 crores in
hypothesis is accepted. Further to test the 2004-05. Further the overall pre and post-
significant difference between the mean merger performance of operating profit were
differences among post merger performance found to be Rs. 4222 crores and Rs. 26299
of financial efficiency in Indian overseas crores respectively. The highest amount of
bank. The highest mean and standard operating profit were found in post-merger
deviation were found in borrowings around performance amounted to Rs. 3997crores in
17.09 and 29.16 respectively. The calculated 2013-14,as against the lowest amount of
P value (Sig 2-tailed) is 0.001, which is less operating profit were found in pre-merger
than the Alpha Value of 0.05, which states performance amounted to Rs. 1325 crores in
that the null hypothesis to be rejected and 2004-05.In the context of pre and post-
alternative hypothesis is accepted. merger performances, the overall total
Pre and Post-merger of IOB: Profitability income were found amounted to Rs.
Performance: Table No.3 represents that pre 14033.01 crores and Rs. 156953 crores
and post merger performance of profitability respectively. The highest amount of total
performance of Indian Overseas Bank. In the income were found in post performance
context of profitability efficiency of bank are amounted to Rs. 33260.45 crores in 2015-

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16,as against the lowest amount of total share were found in post performance
income were found in pre-merger amounted to Rs. 24.34 in 2008-09,as against
performance amounted to Rs. 2004- the lowest earning per share were found in
05.Further the overall pre and post-merger pre-merger performance of Rs. 3.78 in 2015-
performances in earning per share were 16.To conclude, profitabilitypost-merger
found to be Rs. 36.74 crores and Rs. 115.43 performance of bank was better compared to
croresrespectively. The highest earning per the pre-merger performance of IOB.
Table No.3: Pre and Post-merger of IOB: Profitability Performance
(Rs.in Crores)
Year Pre-Merger
Net Profit Operating Profit Total Income EPS
2004-05 513 1325 4494.76 10.40
2005-06 651 1337 4590.85 11.96
2006-07 783 1560 4947.40 14.38
Total [A] 1947 4222 14033.01 36.74
Mean 7.42 18.14 21.66 12.32
Standard Deviation 15.34 20.83 33.71 26.17
Independent Sample T=3.107
T-Test P=0.01
Post-Merger
2007-08 1008 2036 6129.12 18.51
2008-09 1326 2002 11237.00 24.34
2009-10 707 1845 11389.00 12.98
2010-11 1073 2861 13327.00 19.63
2011-12 1050 3534 13326.00 16.93
2012-13 567.23 3817 19570.15 7.07
2013-14 601.74 3997 22649.63 6.14
2014-15 454.00 3322 26076.93 6.05
2015-16 289.70 2885 33260.45 3.78
Total [B] 7076.67 26299 156953.00 115.43
Grand Total [A+B] 9023.27 30521 29728.31 152.17
Mean 17.86 22.92 11.44 14.82
Standard Deviation 34.23 38.21 18.61 17.36
Independent Sample T=3.821
T-Test P=0.010
Source: Annual Reports of Indian Overseas Bank.
Independent sample T-test shows the tailed) is 0.001, which is less than the Alpha
significant difference between the mean Value of 0.05, which states that the null
differences among pre-merger performance hypothesis to be rejected and alternative
of profitabilityperformance of Indian hypothesis is accepted. Further to test the
overseas bank. The highest mean and significant difference between the mean
standard deviation were found in total differences among post-merger performance
income category around 22.92 and 38.21 of profitability efficiency of Indian overseas
respectively. The calculated P value (Sig 2- bank. The highest mean and standard

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deviation were found in operating profit Further the overall pre and post-merger
category around 22.92 and 38.21 performances in borrowings were found
respectively. The calculated P value (Sig 2- to be Rs.4216.37 crores and
tailed) is 0.010, wwhich is less than the Rs.154773.60 crores respectively.
Alpha Value of 0.05, which states that the In the context of pre and post-merger
null hypothesis to be rejected and alternative performance, the overall net profits were
hypothesis is accepted. found amounting to be Rs.1947 crores
Findings of the Study: and Rs.7076.67 crores respectively.
In view of pre-merger performance of the The overall pre and post-merger
bank, the overall number of branches i,e., performance of operating profit were
4633 was found in IOB and after that found to be Rs.4222 crores and Rs.26299
IOB was merged with BharathOverseas crores respectively.
Bank, the number of branches were In the context of pre and post-merger
increased to 22,540. performances, the overall total incomes
Further the pre and post-merger were found amounting to Rs.14033.01
performance, the overall number of onsite crores and Rs.156953 crores respectively.
and offsite ATMs were 832 and 14765 Further the overall pre and post-merger
ATMs networks respectively. performances in earning per share were
In the context of pre and post-merger found to be Rs.36.74 and Rs.115.43
performance, the overall total assets were respectively.
stood amounts Rs.83482.18 crores Suggestions for the Study:
andRs.1638433 crores respectively. The following are the suggestions for
Further, the overall pre and post-merger the study:
performance in net worth of the bank Mergers and acquisitions should be
amounts to Rs.1634.04 crores and examined separately, as they are driven
Rs.7548.6 crores respectively. by different factors such as, analysis of
In the context of pre and post-merger financial informations etc.
performance, the overall deposits were To Provide clear, consistent, factual,
found amounting to Rs.154464.20 crores sympathetic, and up-to-date information
and Rs.1503994.12 crores respectively. in various ways will increase the coping
Further the overall pre and post-merger abilities of employees, which will in turn
performance of investments were found increase their productivity. This increased
to be Rs.61734.97 crores and productivity will positively impact on
Rs.493190.10 crores respectively. banks performance and create sustained
In the context of pre and post-merger competitive advantage by achieving the
performances, the overall loans and projected strategic fit and synergies.
advances were found to be Rs.92539.59 In order to standardize the use of its
crores and Rs.994407.91 crores indigenous technologies into the acquired
respectively. firm, management should seek for

1st December 2016 Website: www.ijmms.in Email: [email protected] Page 10

VOLUME-III, ISSUE-XII ISSN (Online): 2350-0476
ISSN (Print): 2394-207X
IMPACT FACTOR: 4.205
INTERNATIONAL JOURNAL OF MULTIFACETED AND MULTILINGUAL STUDIES
creative new combinations of the Conclusion: The concept of merger and
transferor bank and acquired transferee acquisition is highly useful tool for growth
indigenous capabilities; understand each and expansion in banks. This study mainly
others technologies and businesses. highlights on pre and post-merger
The transfer bank also should gently performance of growth efficiency, financial
work with the acquisition personnel, efficiency, profitability efficiency of Indian
solicits their inputs, and includes them in Overseas Bank.This paperanalyzed overall
decisions that affect them. twelve years of performance, out of that three
The banks should concentrate on liquid years considered as pre-merger performance
management competencies after the pre- (2004-2007) and remaining nine years
merger and post-merger acquisition make considered as post-merger performance
out the proper strategies to maintain (2007-2016).Finally it results that the post-
liquidity position of the banks. merger performance in profitability and
Banks should create awareness relates to financial analysis banks performance better
merger and acquisition, intensify training compared to post-merger performance based
and retraining programmes for all staff, on efficiency scores. Therefore the merger
particularly the management staff, to and acquisition process is considered as one
improve management efficiency. of the most useful strategy for expansion and
positive growth in Indian banking industry.

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