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Ijrcm 3 Evol 1 Issue 6 Art 12
Ijrcm 3 Evol 1 Issue 6 Art 12
6 (OCTOBER)
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Page No.
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CHIEF PATRON
PROF+ %+ %+ AGGARWAL
)hancellor" 2in#aya3s 4niversity" Delhi !ounder 5ice-)hancellor" uru obind Sin#h Indraprastha 4niversity" Delhi 67% Pro 5ice-)hancellor" uru Ja0bheshwar 4niversity" +isar
PATRON
SH+ RAM BHAJAN AGGARWAL
67% State Minister for +o0e 8 9ouris0" overn0ent of +aryana 5ice-President" Dadri 6ducation Society" )har:hi Dadri President" )hinar Synte7 2td% ;9e7tile Mills<" Bhiwani
COCO-ORDINATOR
DR+ BHAVET
!aculty" M% M% Institute of Mana#e0ent" Maharishi Mar:andeshwar 4niversity" Mullana" A0bala" +aryana
ADVISORS
PROF+ M+ S+ SENAM RAJU
Director A% )% D%" School of Mana#e0ent Studies" I% %$%O%4%" $ew Delhi
PROF+ M+ N+ SHARMA
)hair0an" M%B%A%" +aryana )olle#e of 9echnolo#y 8 Mana#e0ent" =aithal
PROF+ S+ L+ MAHANDRU
Principal ;Retd%<" Mahara1a A#rasen )olle#e" Ja#adhri
EDITOR
PROF+ R+ %+ SHARMA
Dean ;Acade0ics<" 9ecnia Institute of Advanced Studies" Delhi
COCO-EDITOR
DR+ SAMBHAV GARG
!aculty" M% M% Institute of Mana#e0ent" Maharishi Mar:andeshwar 4niversity" Mullana" A0bala" +aryana
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PROF+ S+ P+ TIWARI
Depart0ent of 6cono0ics 8 Rural Develop0ent" Dr% Ra0 Manohar 2ohia Avadh 4niversity" !ai*abad
DR+ SAMBHAVNA
!aculty" I%I%9%M%" Delhi
ASSOCIATE EDITORS
PROF+ ABHAY BANSAL
+ead" Depart0ent of Infor0ation 9echnolo#y" A0ity School of 6n#ineerin# 8 9echnolo#y" A0ity 4niversity" $oida
PARVEEN %HURANA
Associate Professor" Mu:and 2al $ational )olle#e" /a0una $a#ar
SHASHI %HURANA
Associate Professor" S% M% S% =halsa 2ubana irls )olle#e" Barara" A0bala
TECHNICAL ADVISORS
AMITA
!aculty" overn0ent +% S%" Mohali
MOHITA
!aculty" /a0una Institute of 6n#ineerin# 8 9echnolo#y" 5illa#e adholi" P% O% adhola" /a0unana#ar
FINANCIAL ADVISORS
DIC%IN GOYAL
Advocate 8 9a7 Adviser" Panch:ula
NEENA
Invest0ent )onsultant" )ha0ba#hat" Solan" +i0achal Pradesh
LEGAL ADVISORS
JITENDER S+ CHAHAL
Advocate" Pun1ab 8 +aryana +i#h )ourt" )handi#arh 4%9%
SUPERINTENDENT
SURENDER %UMAR POONIA
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E%
INTRODUCTION: Manuscript 0ust be in British 6n#lish prepared on a standard A( si*e paper settin#% It 0ust be prepared on a sin#le space and sin#le colu0n with &F 0ar#in set for top" botto0" left and ri#ht% It should be typed in G point )alibri !ont with pa#e nu0bers at the botto0 and centre of the every pa#e% MANUSCRIPT TITLE: 9he title of the paper should be in a &E point )alibri !ont% It should be bold typed" centered and fully capitalised% AUTHOR NAME=SD * AFFILIATIONS: 9he author ;s< full na0e" desi#nation" affiliation ;s<" address" 0obileAlandline nu0bers" and e0ailAalternate e0ail address should be in italic 8 &&-point )alibri !ont% It 0ust be centered underneath the title% ABSTRACT: Abstract should be in fully italici*ed te7t" not e7ceedin# E.' words% 9he abstract 0ust be infor0ative and e7plain the bac:#round" ai0s" 0ethods" results 8 conclusion in a sin#le para% %EYWORDS: Abstract 0ust be followed by list of :eywords" sub1ect to the 0a7i0u0 of five% 9hese should be arran#ed in alphabetic order separated by co00as and full stops at the end% HEADINGS: All the headin#s should be in a &' point )alibri !ont% 9hese 0ust be bold-faced" ali#ned left and fully capitalised% 2eave a blan: line before each headin#% SUB'HEADINGS: All the sub-headin#s should be in a G point )alibri !ont% 9hese 0ust be bold-faced" ali#ned left and fully capitalised% MAIN TE,T: 9he 0ain te7t should be in a G point )alibri !ont" sin#le spaced and 1ustified% FIGURES *TABLES: 9hese should be si0ple" centered" separately nu0bered 8 self e7plained" and titles 0ust be above the tablesAfi#ures% Sources of data should be 0entioned below the tableAfi#ure% It should be ensured that the tablesAfi#ures are referred to fro0 the 0ain te7t% E UATIONS: 9hese should be consecutively nu0bered in parentheses" hori*ontally centered with e?uation nu0ber placed at the ri#ht% REFERENCES: 9he list of all references should be alphabetically arran#ed% It 0ust be sin#le spaced" and at the end of the 0anuscript% 9he author ;s< should 0ention only the actually utilised references in the preparation of 0anuscript and they are supposed to follow H-7E-7F S0/;3 54 R34373.81.:% 9he author ;s< are supposed to follow the references as per followin#B All wor:s cited in the te7t ;includin# sources for tables and fi#ures< should be listed alphabetically% 4se ;3F+< for one editor" and ;3F+CD for 0ultiple editors% >hen listin# two or 0ore wor:s by one author" use --- ;E'77<" such as after =ohl ;&JJI<" use --- ;E''&<" etc" in chronolo#ically ascendin# order% Indicate ;openin# and closin#< pa#e nu0bers for articles in 1ournals and for chapters in boo:s% 9he title of boo:s and 1ournals should be in italics% Double ?uotation 0ar:s are used for titles of 1ournal articles" boo: chapters" dissertations" reports" wor:in# papers" unpublished 0aterial" etc% !or titles in a lan#ua#e other than 6n#lish" provide an 6n#lish translation in parentheses% 9he location of endnotes within the te7t should be indicated by superscript nu0bers% PLEASE USE THE FOLLOWING FOR STYLE AND PUNCTUATION IN REFERENCES:
BOO%S
Bowerso7" Donald J%" )loss" David J%" ;&JJH<" K2o#istical Mana#e0ent%K 9ata Mc raw" +ill" $ew Delhi%
+un:er" +%2% and A%J% >ri#ht ;&JH-<" K!actors of Industrial 2ocation in Ohio"K Ohio State 4niversity% CONTRIBUTIONS TO BOO%S Shar0a 9%" =watra" % ;E''G< 6ffectiveness of Social Advertisin#B A Study of Selected )a0pai#ns" )orporate Social Responsibility" 6dited by David )rowther 8 $icholas )apaldi" Ash#ate Research )o0panion to )orporate Social Responsibility" )hapter &." pp EGI--'-% JOURNAL AND OTHER ARTICLES Sche0enner" R%>%" +uber" J%)% and )oo:" R%2% ;&JGI<" K eo#raphic Differences and the 2ocation of $ew Manufacturin# !acilities"K Journal of 4rban 6cono0ics" 5ol% E&" $o% &" pp% G--&'(% CONFERENCE PAPERS ar# Sa0bhav ;E'&&<B KBusiness 6thicsK Paper presented at the Annual International )onference for the All India Mana#e0ent Association" $ew Delhi" India" &J,EE June% UNPUBLISHED DISSERTATIONS AND THESES =u0ar S% ;E'&&<B K)usto0er 5alueB A )o0parative Study of Rural and 4rban )usto0ers"K 9hesis" =uru:shetra 4niversity" =uru:shetra% ONLINE RESOURCES Always indicate the date that the source was accessed" as online resources are fre?uently updated or re0oved% ar#" Bhavet ;E'&&<B 9owards a $ew $atural as Policy" 6cono0ic and Political >ee:ly" 5iewed on July '." E'&& httpBAAepw%inAuserAviewabstract%1sp WEBSITE
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FULFILMENT OF MERGER MOTIVES ' EVIDENCES FROM MERGERS AND AC UISITIONS IN THE INDIAN BAN%ING SCENARIO
DR. V. K. SHOBHANA ASSOCIATE PROFESSOR & HEAD PG & RESEARCH DEPARTMENT OF COMMERCE VELLALAR COLLEGE FOR WOMEN (AUTONOMOUS) THINDAL, ERODE - 12 DR. N. DEEPA ASST. PROFESSOR PG AND RESEARCH DEPARTMENT OF COMMERCE SRI VASAVI COLLEGE ERODE - 6 ! 16
ABSTRACT
The Gove !"e!# o$ I!%&' h'( '%o)#e% #he o*#e o$ "e +e ( '"o!+ o#he ( ,&#h ' v&e, #o e(# *-#* e #he .'!/&!+ (0(#e". Me +e ( '!% A-1*&(&#&o!( ' e -o!(&%e e% #o .e #he $'(# # '-/ $o &!- e'(&!+ #he (&2e, e3)'!%&!+ . '!-h !e#,o / '!% e!4' +&!+ .*(&!e(( o)e '#&o!(. Th&( (#*%0 "'/e( ' ) o.e &!#o #he $*4$&44"e!# o$ "o#&ve( '( vo,e% &! #he "e +e %e'4( o$ #he !&!e (e4e-# "e +e% .'!/(. The (#*%0 *(e( S*""' 0 S#'#&(#&-(, W&4-o3o! M'#-he% P'& e% S&+!e% R'!/ Te(# '!% 5#6 #e(# $o '!'40(&( '!% &!#e ) e#'#&o! o$ %'#' )e #'&!&!+ #o #he $&ve ) e '!% )o(# "e +e )e &o%( e'-h. The e(*4# &!%&-'#e( #h'# #he e h'( .ee! o!40 )' #&'4 $*4$&44"e!# o$ #he "o#&ve( '( e!v&('+e% &! #he "e +e %e'4(.
%EYWORDS
Mer#er" Ac?uisitions" Ban:in#%
INTRODUCTION
er#ers and ac?uisitions in ban:in# sector have beco0e fa0iliar in 0a1ority of the countries in the world% A lar#e nu0ber of international and do0estic ban:s all over the world are en#a#ed in 0er#er and ac?uisition activities% 9he pheno0enon of 0er#ers and ac?uisitions a0on# Indian ban:s is not restricted to the post refor0 era of the Indian Ban:in# Syste0% Between &JH&- E''(" there have been I& 0er#ers a0on# various ban:s in India ;2a:sh0inarayanan" E''.<% Of these" .. 0er#ers occurred durin# the pre-refor0 period of &JH'-&JJ'% It is i0portant to note that 0any 0er#ers durin# the pre-refor0 period were instituted by the overn0ent in an effort to restructure ailin# ban:in# units% Mar:et driven 0er#ers" which are on a #radual rise" are thus" outco0es of the post refor0 period" driven by the chan#e in the co0petitive landscape of the Indian ban:in# syste0 which forced 0any of the incu0bent ban:s to restructure the0selves and boost their efficiency in an atte0pt to ensure lon#-ter0 profitability and survival%
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the values of relevant perfor0ance appraisal variables have been co0puted for five pre-0er#er years and sa0e nu0ber of post-0er#er years alon# with their 0eans of respective periods% 9he sa0ple statistic NMeanF of all the variables for both the pre and post-0er#er periods has been co0pared and presented%
EFFECT ON PROFITABILITY
Achievin# profitability bein# the 0a1or cause of 0er#er" the ratios li:e Return on Assets ;ROA<" Return on )apital 60ployed ;RO)6<" Return on $et >orth ;RO$><" Profit Mar#in and 9otal Inco0e to 9otal Assets ;Asset 4tili*ation< have been co0puted for the 0er#ed ban:s and their 0ean ratios of both pre-0er#er and post-0er#er periods are presented in 9able E% TABLE 2: EFFECTS OF MERGER ON PROFITABILITY ;Mean Ratios in Percenta#es< B-.AC ROA ROCE RONW P75410 M-7:1. TI 05 TA P73 P5C0 P73 P5C0 P73 P5C0 P73 P5C0 P73 P5C0 P?H;18 S38057 B-.AC BOB I%&H .%&& I%HE .%-. &-%(E &-%EH I%E&'%'G &'%EG G%'I OB) G%-& H%(. G%.H H%HJ &J%J( J%JG &'%JH G%(. H%-& .%-' P$B I%(I .%-H I%J' .%HI E'%-. &I%E- I%I& &E%EG &&%&& G%(( SBI H%-( I%'. G%'. G%(E &'%JI &(%JJ E%H' H%JI &'%I- &'%-G 4BI I%EH H%(G I%.H H%I- &E%JJ &I%.H H%(E J%(E &'%H& J%.G P71E-03 S38057 I.F1-. B-.AC +D!) H%I' .%.J I%E' H%EJ &(%(. &I%HJ &H%-- &.%IG J%'' G%&& I)I)I G%'( .%(I G%.E .%JE &H%E- &-%-I &E%I. &E%E- &'%HG I%G( P71E-03 S38057 F5731:. B-.AC +SB) I%I' H%'- G%(E H%G. &'%JI &&%E' J%I( &'%&. &&%J. J%H' S)B G%'E H%.. G%HH I%-' &E%(- E-%&I J%.J E'%H. &-%H( J%J' SourceB )o0piled and calculated fro0 the annual reports of the ban:s As reported in 9able E" Return on Assets had hi#her 0ean value in the pre-0er#er period co0pared to the post-0er#er period" indicatin# that" on an avera#e" the profitability of the select ac?uirer ban:s has declined in the post-0er#er period e7cept for State Ban: of India% 9he sa0e trend was noted in case of RO)6% More than .'O of the select ac?uirer ban:s such as" SBI" 4BI" +D!)" +SB) and S)B were able to i0prove profitability in ter0s of post-0er#er RO$> which is evident fro0 the 0ean ratios in the post-0er#er period%9he post-0er#er 0ean ratio of Profit Mar#in of the select public sector ban:s li:e BOB" P$B" SBI and 4BI and the private sector forei#n ban:s were #reater in the post-0er#er period than the pre-0er#er period% OB)" +D!) Ban: and I)I)I Ban:s were not able to i0prove their profit 0ar#in in the post-0er#er period% $one of the sa0pled ban:s have succeeded in i0provin# their post-0er#er 0ean ratio of 9otal Inco0e to 9otal Assets which is indicative of the fact that the ban:s could not utili*e their assets 0ore profitably after 0er#er% 9he si#nificance of these ratios were tested throu#h M statistic and #iven in 9able -% TABLE 3: RESULTS OF WILCO,ON MATCHED PAIRS SIGNED RAN%S TEST =PROFITABILITYD S3;380 R-015C Z S0-01C018 I.873-C3F -4037 M37:37 D3873-C3F -4037 M37:37 N5+54 B-.AC P3783.0 =ID N5+54 B-.AC P3783.0 =ID RO)6 -E%.(IP & && G GJ ;-'%'&< ROA -E%.(IP & && G GJ ;-'%'&&< RO$> -'%II . .H ( (( ;-'%((&< Profit Mar#in -&%.JJ H HI -;-'%&&< 9otal Inco0eA9otal Assets -E%HHHPP ' ' J &'' ;-'%''G< P denotes si#nificance at .O level% PP denotes si#nificance at &O level% $oteB 9he fi#ures in parenthesis are esti0ated probabilities% Results of Matched Pairs Si#ned Ran:s3 9est as reported in 9able - revealed that the decline in profitability in ter0s of RO)6" ROA and Burden to wor:in# fund were si#nificant at .O level and in ter0s of 9otal Inco0e to total assets and Spread to >or:in# !und were si#nificant at &O level% !or other 0easures of profitability" however" the decline is not si#nificant% 9hou#h" ratios li:e Profit Mar#in and 9otal Inco0e to 9otal Assets had increased in the post-0er#er period in 0a1ority of the sa0pled ac?uirer ban:s" this increase is not found statistically si#nificant%
EFFECT ON GROWTH
!or the analysis related to fulfil0ent of 0er#er 0otives" the #rowth indicators li:e Deposits" Advances" 9otal Assets and 9otal Inco0e were considered% Analysis of i0pact on #rowth in respect of select para0eters of #rowth as per 9able (" indicated substantial #rowth in the si*e of deposits for +D!) and I)I)I ban: at &. and E' ti0es respectively% I)I)I ban: recorded a whoppin# #rowth of (G ti0es and +D!) ban: at E& ti0es in their advances durin# post M 8 A period% Si0ilar trend has been noticed in the case of total assets also%
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TABLE !: EFFECT OF MERGER ON GROWTH 9he private sector forei#n ban:s involved in 0er#ers could achieve three to five fold increase in ter0s of the various #rowth para0eters% 9he public sector ban:s D3>5C10C AFE-.83C T50-; ACC30C T50-; I.8523 P73 P5C0 P73 P73 P73 I.8+ 1. P73 P5C0 I.8+ 1. P73 P5C0 I.8+ 1. =RC+D =RC+D =RC+D =RC+D =RC+D T123C =RC+D =RC+D T123C =RC+D =RC+D T123C P?H;18 S38057 B-.AC BOB .'&II%'- &'(JGE%.G E%'J E(I&I%'' H.G(I%'. E%HH .G&G.%IG &E-&GE%EE E%&E .J.(%&( JIHJ%-J &%H( OB) EG&(J%-- G'.E-%(J E%GH &-JG-%.H ..J..%-E (%'' -&II&%E' JEJE.%H( E%JE -((-%JE IJ(E%'E E%-& P$B (GI-I%I' &E-(&I%'E E%.E-'H-%.J IJHIE%.G -%(. ..-.&%(H &(I&&-%J' E%HH H'G&%E( &EEI-%E' E%'E SBI HIEGE%-& &I''JH%II E%.(-GEE%(( G-&GH%.. &%J' &''JEG%II EEI&H'%G' E%E. &'IG-%I' E-EEI%I. E%&. 4BI E'GJG%&' (H-H(%'& E%EE G.'J%.' EHIGH%J' -%&. E--GJ%GI .-'-(%G. E%EI E(IG%GI (JG(%HJ E%'& P71E-03 S38057 I.F1-. B-.AC +D!) &.(E%I' E-HJ'%EE &.%-H H(G%'&--'-%E& E'%.- EHIH%-E -EIH'%JI &E%E( E&H%II E.H.%J& &&%G( I)I)I (&EG%I' GEH.E%JJ E'%'E &H.-%.( G''HI%'( (G%(E .'.(%.I &.&GIE%HI -'%'. (G&%EH &&J-H%.H E(%G' P71E-03 S38057 F5731:. B-.AC +SB) (IEI%H( &-HI.%EI E%GJ E&J-%IIIH&%G( -%.( H-JH%H' E&G(.%H-%(E I(J%E. E'.G%HE%I. S)B ((E'%&I &JE-.%(I (%-. EGG(%EG &...J%.. .%-J HI&E%&H --&(&%-I (%J( J'G%'J -E'E%.G -%.involved in M 8 A activity achieved two to three-fold increase in the #rowth indicators barrin# total inco0e which increased around E ti0es only% 9his #rowth in all the indicators were also tested throu#hCt3 test and #iven in 9able .% TABLE 5: RESULTS OF JT TEST =GROWTH VARIABLESD Rs% in crores S;+N5+ & E ( G75K0B 1.F18-057C Deposits Advances 9otal Assets 9otal Inco0e P73 M37:37 P3715F M3-. =RC+D S+D E..HE%HE(.HJ%G& &-(JI%-' &(H&&%E. -EEI(%'G --(EE%I' -(..%E. -..E%&H P5C0 M37:37 P3715F M3-. =RC+D S+D I-G(G%H. .-E.E%I(I.I&%&& -&.I-%(E JG&&.%-( HJIHG%EGHHE%-' HIE(%HE 0'E-;?3 (%((P (%EIP (%E&P -%GEP I.F18-057C @ B-.AC
P Si#nificant at .O level of si#nificance ;9able 5alue is &%GH'" D! - G< It is observed fro0 the results of Ct3 test #iven in 9able . that the i0pact of 0er#er on #rowth is found to be si#nificant in all the 0er#er deals" in ter0s of all the #rowth indicators% +ence" the null hypothesis that there is no si#nificant difference in the #rowth between pre and post 0er#er period is re1ected%
EFFECT ON LEVERAGE
2evera#e i0balance bein# a cause of 0er#er" 0ean of the levera#e ratios for 0er#ed ban: in the pre-0er#er has been co0pared with the levera#e ratios in the post-0er#er period% )apital Ade?uacy Ratio ;)AR< and Debt-6?uity Ratio ;D6R< have been used to analyse the effect of levera#e on 0er#ers and the resultant 0ean ratios are specified in 9able H% TABLE #: EFFECT OF MERGERS ON LEVERAGE ;Mean Ratios in percenta#es< B-.AC CAR DER P73 P5C0 P73 P5C0 P?H;18 S38057 B-.AC BOB &E%-& &E%JG &I%&. &.%&OB) &E%G& &E%&H &H%E' &-%(( P$B &'%&I &-%'E EE%(. &.%HSBI &E%-E &E%I& (H%(& &J%J( 4BI &'%E. &&%I. &G%EH &J%&J P71E-03 S38057 I.F1-. B-.AC +D!) &E%GH &&%JJ H%&J &E%J' I)I)I &(%J. &&%H& &&%.E &-%'& P71E-03 S38057 F5731:. B-.AC +SB) &'%G. &-%JJ G%IH &'%(I S)B &'%EH &'%EE J%-' &'%(& SourceB )o0piled and calculated fro0 the annual reports of the ban:s Accordin# to the nor0s of the RBI" each ban: in India has to 0aintain JO of their ris:-wei#hted assets as capital% All the sa0pled ban:s were able to 0aintain ade?uate capital ade?uacy ratio% +owever" it could be noted fro0 9able H that #rowth of )apital Ade?uacy Ratio declined in the post-0er#er period in case of OB)" +D!) Ban:" I)I)I Ban: and S)B% 9he Debt 6?uity Ratio ;D6R< of all select public sector ban:s e7cept 4BI #ot reduced durin# the post-0er#er period indicatin# lesser dependence on debt capital over the pre-0er#er period% >here as" the D6R of both Indian and !orei#n Private sector Ban:s indicated 0ore dependence on debt capital by re#isterin# increased ratio in the post-0er#er period% In order to test this statistically" >ilco7on Matched Pairs Si#ned Ran:s3 9est was applied and shown in 9able I% TABLE ": RESULTS OF WILCO,ON MATCHED PAIRS SIGNED RAN%S TEST =LEVERAGED S3;380 R-015C Z S0-01C018 I.873-C3F -4037 M37:37 D3873-C3F -4037 M37:37 N5+54 B-.AC P3783.0 =ID N5+54 B-.AC P3783.0 =ID & )apital Ade?uacy Ratio -'%(E ( .' ( .' ;-'%HI(< E Debt 6?uity Ratio -'%H.E . .H ( (( ;-'%.&.< P denotes si#nificance at .O level% PP denotes si#nificance at &O level% $oteB 9he fi#ures in parenthesis are esti0ated probabilities% 9he Results of >ilco7on Matched Pairs Si#ned Ran:s3 9est in 9able I revealed insi#nificance for both the ratios ta:en for analy*in# levera#e% But this is not an adverse effect@ rather it indicates #reater protection to the creditors and depositors% S;+N5%
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EFFECT ON TA, CONSIDERATION AND RIS% REDUCTION 9he effect of ta7 variable on 0er#er is 0easured as difference between pre-0er#er and post-0er#er effective ta7 rate of the 0er#ed fir0% 9he effective ta7 rate is calculated as the ratio of ta7 paid to profit before ta7% 5ariation in profits is a co00only used esti0ate of ris: of profits% 9he 0easure of ris: for the purpose of this analysis has been ta:en as coefficient of variation of #ross operatin# profit% 9he results of these 0easures are put into 9able G% TABLE $: EFFECTS OF MERGER ON TA, CONSIDERATION AND RIS% REDUCTION ;Mean Ratios in Percenta#es< B-.AC E443801E3 T-L R-03 R1CA R3F?8015. P73 P5C0 P73 P5C0 P?H;18 S38057 B-.AC BOB --%JI -&%(( E-%-H E&%GOB) -H%.' -&%G( (.%HG E-%JE P$B EH%HJ -E%J& EG%-J &I%J& SBI -.%.-G%'J EI%'- &H%(. 4BI E'%IE EE%E& E.%EG -J%'H P71E-03 S38057 I.F1-. B-.AC +D!) -'%J( -&%(' IG%HE (&%GG I)I)I E&%EJ &&%II HJ%J- (G%H& P71E-03 S38057 F5731:. B-.AC +SB) .J%EG .-%E' &-%G. --%E& S)B E'%HG -E%GJ ((%J' EJ%&. SourceB )o0piled and calculated fro0 the annual reports of the ban:s An e7a0ination of the fi#ures #iven in 9able G shows that the ris: in ter0s of variations in operatin# profit has been reduced for all the select ac?uirer ban:s e7cept for 4BI and +SB) which witnessed hi#her percenta#e variations in operatin# profit durin# the post-0er#er period over the pre-0er#er period% 2i:ewise" 0any of the select ac?uirer ban:s li:e BOB" OB)" I)I)I and +SB) had reduced ta7 burden in the post-0er#er period as is evidenced fro0 their effective ta7 rate" revealin# ta7 benefits% !urther" the si#nificance of the variations are statistically tested and presented in 9able J% TABLE &: RESULTS OF WILCO,ON TEST =TA, CONSIDERATION AND RIS% REDUCTIOND S3;380 V-71-H;3C Z S0-01C018 I.873-C3F -4037 M37:37 D3873-C3F -4037 M37:37 N5+ 54 B-.AC P3783.0 =ID N5+ 54 B-.AC P3783.0 =ID & 6ffective 9a7 Rate -'%EG ( .' ( .' ;-'%IIJ< E Ris: Reduction -&%(G& E EE I IG ;-'%&-J< As per the results of >ilco7on Matched Pairs Si#ned Ran:s3 9est shown in 9able J" differences in the 0ean ratios between the periods before and after 0er#er as re#ards ris: reduction and ta7 advanta#es were insi#nificant" provin# the hypothesis% S;+ N5+
REFERENCES
&% E% -% (% .% H% I% G% F?;H-: S1.:B -.F M5.1A- M5:;-" NI0pact of Mer#ers on Profitability of Ac?uirin# )o0paniesF" IC7AI Jo* !'4 o$ Me +e ( '!% A-1*&(&#&o!(" 5ol% 5" $o% E" June E''G" pp% H'-IH% G?7?21.F37 A757-" NMer#ers and Ac?uisitions in Indian )orporate Sector , A Study of Motives and !inancial Perfor0anceF" Ph. D #he(&(" E''-" Delhi School of 6cono0ics" Delhi 4niversity" $ew Delhi% %-E371 V+S, 7&!'!-&'4 A!'40(&( o$ Co")'!0 Me +e ( &! I!%&'" +i0alaya Publishin# +ouse" Mu0bai" &JGH L-ACB21.-7-/-.-., P+, ;E''.< )onsolidation in the Ban:in# Industry throu#h Mer#ers and Ac?uisitions" Special Issue" I!%&'! B'!/( A((o-&'#&o! B*44e#&!" Indian Ban:s Association" ;January<" pp% JE-JJ% N-71.F37 % B -.F R330? %" NP o$&#'.&4� '!'40(&( o$ Ne, P &v'#e (e-#o B'!/( &! I!%&'F" PMI9 Journal of Research" 5ol% &" $o% &" Mar-Au# E''G" pp% -.-((% P-K-CA-7, V-7FB-.-, N6ffect of Mer#ers on )orporate perfor0ance in IndiaF" V&/'4)'" 5ol% EH" $o%&" Jan-March E''&" pp% &J--&% SB1E-, R-2? S" Co )o '#e + o,#h Th o*+h Me +e ( '!% A-1*&(&#&o!(" Sa#e Publications" $ew Delhi" &JJG S?73.F7- S+Y, J-1. P+% -.F N101. S+J" NP o$&#'.&4� o$ Me +e ( 8 (o"e (e4e-#e% -'(e(9" 9he Mana#e0ent Accountant" 5ol% -(" $o% I" July &JJJ" pp% .'E-.'I%
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ISSN 2231-4245
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