Title: A COMPARATIVE STUDY OF PRE AND POST MERGER ASSET QUALITY OF SELECTED INDIAN BANKS
Authors: Dr. Khushboo Singh and Dr. Anup Kumar Roy
Abstract:

This paper investigates Asset Quality based on CAMEL Model of selected Public Sector Commercial Banks in India. For the purpose, the study employs a descriptive research design The Banks, which were part of mega-merger took place on August 2019 with effect from April 1, 2020 are selected for the study. Secondary data from 2016-17 to 2023-24 is used, covering ten banks for the pre-merger period (2016-17 to 2019-20) and four banks for the post-merger period (2020-21 to 2023-24). Asset Quality is assessed using indicators such as Gross NPA to Total Assets, Net NPA to Total Assets, Gross NPA to Total Advances, Net NPA to Total Advances, and the Provisioning Coverage Ratio. Paired t-tests is applied to determine if there is a significant difference in Asset Quality of the banks between the pre- and post-merger periods. The study finds that the merger has an overall positive effect on Asset Quality of the banks and enhanced the Risk Management practices of the banks.

Keywords: NPA; Non-Performing Assets, Bank Merger, Indian Banking Sector, Ratio Analysis
DOI: https://doi.org/10.38193/IJRCMS.2024.6615
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Date of Publication: 27-12-2024
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Published Volume & Issue: Volume 6 Issue 6 Nov-Dec 2024