Post-merger efficiency of banks in India- A study of HDFC bank and Centurian bank of Punjab

The purpose of present paper is to examine the issues involved in M&A of banks in India. In the paper the attempt is made to compare the pre-merger and post-merger performance of Centurian Bank of Punjab and HDFC Bank by comparing different efficiency parameters like Profit Per employee, Business Per Employee, Investment and Advances, Interest Income, Return on Assets, NPAs etc. The results of the study indicate that after merger all the parameters except Profit Per employee have improved. The study also concluded that the process of mergers should be market driven and clear reasons must exist for M&A, which may include revenue growth, lower costs and improved return on assets.