Financial Performance Evaluation of Indian Commercial Banks during Before and After Mergers

This paper attempts to verify the impact of mergers on the financial performance of Commercial Banks that have been merged during the years 2001 to 2010 and is based on the financial reports of the merged banks. Evaluation is done using accounting ratios consisting of Credit Deposit Ratio, Capital Adequacy Ratio, Non-Performing Assets Ratio, and Return on Assets. The financial performance of the merged banks was compared taking the average of three years before and three years after the merger. The findings of the study reveal that over the study period average financial performance increased by 34%. The results of regression inferred that the selected financial indicators contributed towards Return on Assets during the pre-merger period only.