Bank of Baroda Merger in India: Pre-Merger Scenario Analysis

Abstract

Having tasted certain amount of success on Merger of SBI with its associate banks, and on account of having a handful of giant public sector banks in the country, the Indian Government is seriously pursuing the agenda of enforcing mergers of public sector banks.  Dena Bank and Vijaya Bank are merged with Bank of Baroda in Sep.2018. The paper is an attempt to analyse the pre-merger scenario in respect of the three banking entities.  Using the secondary data on Ratios obtained from the official database of the Reserve Bank of India, the study analyses key ratios of 10-year period from 2008 to 2017.  The study found the incidence of NPA to be higher for all three banks, with low Return on Assets.  It is suggested that efforts must be made to improve the ROA, and reduce the NPAs to enhance the efficiency and performance of the merged entity.