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

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  • Gaganpreet Kaur

    (Guru Nanak Dev University)

  • Anju Bala

    (DAV University)

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.).

Suggested Citation

  • Gaganpreet Kaur & Anju Bala, 2024. "Merger as an only rescue/choice: lessons from a public sector bank of India," Journal of Banking Regulation, Palgrave Macmillan, vol. 25(2), pages 95-111, June.
    • Handle: RePEc:pal:jbkreg:v:25:y:2024:i:2:d:10.1057_s41261-023-00216-9
    DOI: 10.1057/s41261-023-00216-9
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    References listed on IDEAS

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    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
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    3. Ritesh Patel, 2018. "Pre & Post-Merger Financial Performance: An Indian Perspective," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 7(3), pages 181-200.
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