A STUDY REPORT ON BANK MERGER

 When local banks face difficulty in bearing the impact of global economy therefore, they
need support and it is one of the reasons for merger.
 Some private banks used mergers as a strategic tool for expanding their market.
 Here are some benefits of merger and acquisition: -
 Sick banks survived after merger.
 Enhanced branch network geographically.
 Larger customer base.
 Increased market share.
 Attainment of infrastructure.
 Here are some challenges in merger and acquisition: -
 Service Quality will suffer.
 Fees and other charges will rise.
 Human issues-uncertainty, human relations between the two banks
employee, difference in the service conditions, difference in the promotional
policies.
 Different customers engaged

2, A STUDY ON HDFC BANK LTD. AND CENTURION BANK OF PUNJAB LTD.

Merger of two weaker bank or merger of one health Bank with one weak bank can be treated as
the faster and less costly way to improve profitability then spurring internal growth. The main
motive behind the merger and acquisition in the banking industry is to achieve economies of
scale and scope. Recent mergers were the Times Bank merged with the HDFC Bank, the Bank
of Madurai with the ICICI Bank, the ICICI Ltd with the ICICI Bank, the Global Trust Bank merged
with the Oriental Bank of commerce and the Bank of Punjab merged with the centurion Bank.
The merger of Bank had positive and significant impact on shareholder’s
wealth. In the year 2008 HDFC Bank Ltd merge with Centurion Bank of Punjab Ltd. In order to
analyses the financial performance of banks after the merger, the financial and accounting ratios
like Gross Profit Margin, Operating Profit Margin, Return on Capital Employed, Return on Equity
and Debt Equity Ratio have been calculated. and the return on equity, debt –equity ratio and
Gross Profit margin has shown the improvement after the merger.

3…. ANALYSE OF MERGER OF SBI AND ITS ASSOCIATE

State bank of India is the India largest public sector bank with a large number of branches across
the country. SBI had a network of its subsidiary banks and all of these subsidiaries were merged
with SBI gradually. But the biggest merger in the history of Indian banking sector took place
recently when SBI merged itself with its five associate banks which include State Bank of Bikaner
and Jaipur, State bank of Mysore, State Bank of Hyderabad, State bank of Travancore and state
bank of Patiala and with the Bhartiya Mahila bank. In this scenario the merging of SBI is proving
to be a milestone to the country’s growth. This paper tries to study the customer’s perception
towards merger of SBI and its associate with special reference to Ernakulum city.