Merger as an only rescue/choice: lessons from a public sector bank of India

Gaganpreet Kaur () and Anju Bala ()
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Gaganpreet Kaur: Guru Nanak Dev University
Anju Bala: DAV University

Journal of Banking Regulation, 2024, vol. 25, issue 2, No 1, 95-111

Abstract: Abstract The present paper examines the reasons that caused the fall of Dena Bank, which led to its merger with Bank of Baroda and Vijaya Bank (the merged bank is now known as Bank of Baroda). This paper measures the extent of deviations in financial performance and profitability of Dena Bank from 2007–08 to 2017–18. The findings of the study indicate that increasing non-performing assets and costs adversely impact the financial position of the fallen bank (Adhana, D., and Raghuvanshi, R. R. 2020. Big Bank Theory: A Study of Amalgamation Plan of 10 Public Sector Banks into 4 Entities. Available at SSRN 3559291). Further post-merger analysis from 2018–19 to 2021–22 shows that Bank of Baroda eventually incorporated the changes well. The finding would be helpful to investors, practitioners, academics, and policymakers to check the financial position of the bank to gain insights into the financial health of the bank and causes that led to its merger (Patel, R. 2018. Pre & post-merger financial performance: an Indian perspective. Journal of Central Banking Theory and Practice 7 (3): 181–200.).

Keywords: Dena bank; Merger; Financial statement analysis; Ratio analysis; Commercial bank; Public sector bank; India (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1057/s41261-023-00216-9

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