• Dr. O C Aloysius

Banking sector plays an important role in financing the economic needs of the country and act as a catalyst to the development and growth of nation. Increased competition and global standards forced the banks to increase their size and achieve maximum efficiency in terms of different parameters. Merger of small and weak banks with large banks is common in India as well as globally. Mergers and acquisitions are common in Indian Banking sector and recently the sector witnessed largest merger in the history of banking industry in India which took place on 1 April, 2017. State Bank of India merged with its 5 associate banks namely State SBBJ, SBH, SBM, SBP, SBT and Bharathiya Mahila Bank. SBI is the largest commercial bank in India and so through this paper an attempt is made to know the impact of mergers of all the Associate banks with SBI on different aspects such as branch size, employee size, profitability, asset quality, branch efficiency and employee efficiency. It is found that there was reduction in the size of employees, branches and profits. But all other indicators including Net NPA to Net Assets ratio .showed favourable change in the post-merger period compared to the pre-merger combined performance. If the figures of pre-merger SBI alone are considered, the merger caused unfavourable change in all the indicators except Net NPA to Net assets, Spread, and Business per employee. SBI has to suffer for a few years to overcome the issues raised consequent to the merger. But the merger is imperative considering the need of the hour.

Mergers and Acquisitions, Profitability, Efficiency, Asset quality

"Merger of SBI Associate Banks with SBI: A Post-Merger Efficiency Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 12, page no.95-103, December-2020, Available :http://www.jetir.org/papers/JETIR2012213.pdf

"Merger of SBI Associate Banks with SBI: A Post-Merger Efficiency Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 12, page no. pp95-103, December-2020, Available at : http://www.jetir.org/papers/JETIR2012213.pdf