This paper examines profitability of the acquiring company in the pre-merger and post-merger period. The selected company is HDFC Bank which took over Centurion Bank of Punjab in July, 2008. Various tools like ratio analysis, trend analysis and statistical t-test are used for evaluating the profitability of HDFC Bank. The results reveal that profitability has increased in the post-merger period. However, the increase is not significant except in case of ratio “Return on Equity” (ROE). Mergeris neither healthy nor loss incurring to the profitability of the bank.
Company merger, Bank merger, Profitability, Competitiveness, Return on equity
