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- Title
The Merger of Associate Banks with State Bank of India: A Pre- and Post-Merger Analysis.
- Authors
Tandon, Neelam; Saxena, Navneet; Tandon, Deepak
- Abstract
The changing global scenario and sustainability of banks implead amalgamation in the banking industry as a corporate strategy. It enhances their financial and operational strengths, maximizes their global reach, helps them achieve synergy by combining business activities, improves performance and reduces costs. This paper focuses on the six-way horizontal merger between State Bank of India (SBI) and its five associate banks and Bharatiya Mahila Bank which catapulted the SBI group to the top 50 banks of the world. The objective is to assess the impact of SBI merger with its associate banks, their position before and after the merger, find out the reasons behind the merger and study the advantages offered by the merger. The authors conclude that though as per the Earnings per Share (EPS) there is dilution and no competitive advantage obtained due to the merger, the other motives such as enhanced productivity, multi-dimensional banking, increased operational efficiency and customer delights will be advantageous to the evolved entity. Overall, integration of investments and treasuries will bring cost-saving and synergy in this era of megamergers.
- Subjects
GOVERNMENT policy on mergers &; acquisitions; BANK mergers; STATE Bank of India; POST-acquisition integration (Mergers); BUSINESS planning; EARNINGS per share; OPERATIONS research
- Publication
IUP Journal of Management Research, 2019, Vol 18, Issue 1, p123
- ISSN
0972-5342
- Publication type
Article