Main Article Content
Abstract
The banking industry is consolidating at an accelerating phase. The main aim of Merger and Acquisitions in the banking sectors is to improve the economies of scale. The merger of SBI is taken to be largest merger in the history of banking industry. Post merger SBI had gained an advantage to be in the 45th position in the top most banks of the world. Also the assets of SBI had increased to an extent of 10 lakh crores as a result of merger. The project’s main objective is to compare the financial performance of State Bank India pre and post-merger which took place in the year 2017. State Bank of India was merged with its 5 associates-State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Patiala, State Bank of Jaipur and Bharatiya Mahila Bank to gain advantage on some areas such as governments aid, larger customer base etc. The tools used for comparing pre and post period were profitability ratios such as return on investment, return on asset, earnings per share, earnings yield ratio etc.,.It is evident from the analysis that the mega merger between the State Bank of India and its associates with BharatiyaMahila Bank has proved to be beneficial. After the merger the net profit had been declined and the stability of bank is being questionable. By overcoming all these issues the associates are successfully merged with SBI with advantages such as raising funds internationally, nation wide coverage and lower administration cost.