We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Impact of Mega Mergers on the Efficiency of Indian PSU Banks.
- Authors
Nishat, Shabnam; Lal Khan, Tagar
- Abstract
The present business environment deems Mergers and Acquisitions (M&As) as a very familiar and efficient strategy to grow and survive. In emerging economies like India, M&As undoubtedly help in sustaining economic growth. M&As help to get faster growth, to compete with rivals, to expand business abroad and also to increase market share. This paper investigates the efficiency of the Indian Public Sector Undertaking (PSU) banks in the light of upcoming mergers in the Indian banking sector. The paper computes bank efficiency by using non-parametric Data Envelopment Analysis (DEA) technique considering the original inputs-outputs data and also the data of hypothetical mergers, considering Non-Performing Assets (NPAs) as undesirable output in both the cases. After computing the efficiency of the Indian PSU banks for merger and non-merger situations, Wilcoxon matched pairs signed-rank test has been applied to examine any significant change in the efficiency levels of banks’ accounting from mergers. The study reveals that only merging of banks might not be fruitful for improving the efficiency of the Indian PSU banks and might not be sufficient for overcoming the challenges and threats facing them. The managers of banks should put serious efforts for improving their efficiency through better cooperation, understanding, efficient utilization of common resources and by implementing better strategic decisions overall.
- Publication
IUP Journal of Business Strategy, 2020, Vol 17, Issue 2, p21
- ISSN
0972-9259
- Publication type
Academic Journal