Journal Press India^®

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Mergers and acquisitions are seen as crucial events in restructuring the corporate finance structure, bringing opportunities of growth and empowerment for the involved companies. Banks are seen as crucial propellers of a country’s economy, and hence the repositioning and reforms are required to keep the process going on efficiently. Thus, with respect to the banking sector, mergers are seen as avenues for restructuring ownership, as well as depth and breadth of operations, also influencing the financial performance of bank. Hence, the present study was centered on the similar notion of effect of merger on the financial performance of the acquirer. The present study was focused on State Bank of India, as it assumes significant place in the Indian economy and has over the time amalgamated two of its subsidiaries. The financial performance of SBI was evaluated with respect to its acquisition on State Bank of Indore through the means of Return on Assets financial ratios. The results showed that no significant change in the performance occurred post-merger event.

Keywords

State Bank of India, State Bank of Indore, ROA, Return on Investments, Financial ratios.

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