Evaluation of mergers and acquisition effects on employees’ productivity in Indian banking sector: A study of voluntary and compulsory mergers

The purpose of the present study is to make comparison between voluntary and compulsory mergers in Indian Banking Sector. The study is an attempt to find the employees’ productivity due to these two types of mergers. An empirical study is carried out on data collected from the official website of RBI and the sites of different banks. Data Envelopment Analysis methodology and statistical tests are used on the data for the purpose of analysis. Efficiency scores are calculated on pre and post merger data of banks. Results indicate that there is no significant difference between pre and post voluntary and compulsory mergers. A comparison between voluntary and compulsory mergers indicated that compulsory mergers had made improvements as compared to voluntary mergers. The present study can be helpful to banks and Government to analyze before making a decision regarding voluntary and compulsory merger.