Pre-merger and post-merger performance analysis of Bank of Baroda-A camel analysis

On April 1, 2019 Dena Bank and Vijaya Bank were merged with Bank of Baroda. The objective of this paper is to study and compare the performance of Bank of Baroda for the years 2018–19 and 2020–21 (one year before and one year after the merger). This paper examines the before and after the merger financial performance of Bank of Baroda's.

The paper is an explanatory study that describes the financial behaviour of the merged bank (BOB). To compare the pre-merger and post-merger performance the study uses CAMEL Model analysis. This model assesses the performance of a financial institute on certain criteria's namely Capital Adequacy; Asset Quality; Management Capability; Earning Quality; Liquidity Risk. For a better understanding Paired Sample Statistics is used. For statistical analysis t, p-value, mean and standard deviation of paired differences are calculated.

The parameters of CAMEL model point at no significant change in the performance of Bank of Baroda (BOB) after the merger. To further endorse our results a statistical analysis by way of paired t-test was performed after which the authors confirmed that there is no immediate change in the performance of BOB.

The present study is the pre-merger and post-merger performance analysis of Bank of Baroda. The study is way forward for research on impact of mergers on the performance of PSB in India. The study initiates debate on success of mergers of PSB on financial sector.