Bank consolidation: Pre & post merger financial performance of State Bank of India

Indian banking system is the lifeblood of Indian Economy. India considered being the fastest growing Emerging Market economy globally; it is inevitable fact that without strong and firm presence of banking at its place it will be difficult for our country economy to grow at the faster pace. India banking sector is considered one of the robust banking system. Nevertheless, it is unavoidable fact that this robust system is going through the worst crisis in recent times. Different measures are taken to overcome a crisis one of the biggest measures being taken and considered for re-engineering the entire system is Consolidation of Banks through Mergers & Acquisition. To implement this strategic decision taken the Government of India approved the proposal of merger of State Bank of India and its Associates & Bhartiya Mahila Bank. The research paper will focus on studying the financial performance of the merged bank prior to merger for financial year 2016-17 and post-merger for financial year 2017-18. The present study will also try to explore the whether the strategic decision of consolidation will help the banks to reboot themselves for better performance in coming years.