Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks

Sriprakash Srivastava; Brajesh Kumar Tiwari

doi:doi:10.11648/j.jwer.20130205.13

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Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks

Sriprakash Srivastava, Brajesh Kumar Tiwari

Published in Journal of World Economic Research (Volume 2, Issue 5)

Received: 22 October 2013 Published: 10 November 2013

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Abstract

A banking merger is just the same as the merger of two companies except that it involves banks. Mergers and Acquisitions (M&A) in the banking sector may be in the form of amalgamation, absorption, consolidation, acquisition or take over. The important point in the bank merger is that banking activities of the participants will always be regulated. In the present study efforts have been made to analyse the effects of M&A on the Financials of the Merger of Nedungadi Bank Ltd. (NBL) With Punjab National Bank (PNB) before and after merger. For this purpose various variables namely, capital, deposits, investments, advances, interest earned, interest paid, total income, total expenditure and net profit have been identified. In the analysis of variables figures for four year prior to merger and figures of variables for four years after the merger have been taken. Figures prior to merger are the total of value of variables of both amalgamating bank (the bank which loses its identity) and amalgamated bank (the bank which continues its existence). The result of regression equation has been found effective after merger of PNB and NBL from the point of view of capital, deposits, advances, interest earned and total income. In the case of investments, fixed assets, interest expenditure, total expenditure, net profit and total assets result of regression equation has been found ineffective. The Null Hypothesis is rejected in all variables except capital, fixed assets and interest expenditure.

Published in	Journal of World Economic Research (Volume 2, Issue 5)
DOI	10.11648/j.jwer.20130205.13
Page(s)	95-103
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Merger, Acquisition, Capital, Deposits, Investments, Advances, Fixed Assets, Interest Earned, Interest Paid, Total Income, Total Expenditure, Net Profit and Total Assets

References

[1]	Agarwal, Shyamji (2000) Mergers and Acquisitions of Commercial Banks in Indian context, IBA Bulletin, p.22
[2]	American Bar Association, (2007) Bank Mergers and Acquisitions: A Handbook Book, USA, p.11
[3]	Banerjee Arindam, (2008), An Insight: Merger in Indian Banks, Mergers in the Banking Industry: A Global Perspective, ICFAI, Hyderabad, p.134
[4]	Currency and Finance, (2008) RBI, p.15
[5]	http://en.wikipedia.org/wiki/Punjab_National_Bank
[6]	Mishra Shashidhar, (2006) Bank Mergers: Is it the right solution? Mergers in the Banking Industry: A Global Perspective, p.47, ICFAI, Hyderabad
[7]	Tiwari Brajesh Kumar (2013) "Consolidation in Indian Banking Sector: Evidence and Challenges Ahead "Xlibris Publisher, USA
[8]	V Gopala Krishna and Ch Radhe Syam, (2007) "Legal Issues and Regulatory Perspectives in Indian Bank Consolidation", p.136, Bank Mergers: The Indian Scenario, ICFAI, Hyderabad
[9]	Yadav, R.A., (1992) Managing Corporate Turnaround, Concept Publishing Company, New Delhi,
[10]	Yildirim, H. S. and G. C. Philippatos, (2007) Restructuring, Consolidation and Competition in Latin American Banking Markets, Journal of Banking and Finance, Vol.31 No. 3
[11]	Zabihollah Rezaee, (2001) "Financial institutions, Valuations, Mergers and Acquisitions", John Wiley and Sons, USA,

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APA Style

Sriprakash Srivastava, Brajesh Kumar Tiwari. (2013). Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. Journal of World Economic Research, 2(5), 95-103. https://doi.org/10.11648/j.jwer.20130205.13

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ACS Style

Sriprakash Srivastava; Brajesh Kumar Tiwari. Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. J. World Econ. Res. 2013, 2(5), 95-103. doi: 10.11648/j.jwer.20130205.13

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AMA Style

Sriprakash Srivastava, Brajesh Kumar Tiwari. Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. J World Econ Res. 2013;2(5):95-103. doi: 10.11648/j.jwer.20130205.13

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@article{10.11648/j.jwer.20130205.13,
  author = {Sriprakash Srivastava and Brajesh Kumar Tiwari},
  title = {Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks},
  journal = {Journal of World Economic Research},
  volume = {2},
  number = {5},
  pages = {95-103},
  doi = {10.11648/j.jwer.20130205.13},
  url = {https://doi.org/10.11648/j.jwer.20130205.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20130205.13},
  abstract = {A banking merger is just the same as the merger of two companies except that it involves banks. Mergers and Acquisitions (M&A) in the banking sector may be in the form of amalgamation, absorption, consolidation, acquisition or take over. The important point in the bank merger is that banking activities of the participants will always be regulated. In the present study efforts have been made to analyse the effects of M&A on the Financials of the Merger of Nedungadi Bank Ltd. (NBL) With Punjab National Bank (PNB) before and after merger. For this purpose various variables namely, capital, deposits, investments, advances, interest earned, interest paid, total income, total expenditure and net profit have been identified. In the analysis of variables figures for four year prior to merger and figures of variables for four years after the merger have been taken. Figures prior to merger are the total of value of variables of both amalgamating bank (the bank which loses its identity) and amalgamated bank (the bank which continues its existence). The result of regression equation has been found effective after merger of PNB and NBL from the point of view of capital, deposits, advances, interest earned and total income. In the case of investments, fixed assets, interest expenditure, total expenditure, net profit and total assets result of regression equation has been found ineffective. The Null Hypothesis is rejected in all variables except capital, fixed assets and interest expenditure.},
 year = {2013}
}

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TY - JOUR
T1 - Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks
AU - Sriprakash Srivastava
AU - Brajesh Kumar Tiwari
Y1 - 2013/11/10
PY - 2013
N1 - https://doi.org/10.11648/j.jwer.20130205.13
DO - 10.11648/j.jwer.20130205.13
T2 - Journal of World Economic Research
JF - Journal of World Economic Research
JO - Journal of World Economic Research
SP - 95
EP - 103
PB - Science Publishing Group
SN - 2328-7748
UR - https://doi.org/10.11648/j.jwer.20130205.13
AB - A banking merger is just the same as the merger of two companies except that it involves banks. Mergers and Acquisitions (M&A) in the banking sector may be in the form of amalgamation, absorption, consolidation, acquisition or take over. The important point in the bank merger is that banking activities of the participants will always be regulated. In the present study efforts have been made to analyse the effects of M&A on the Financials of the Merger of Nedungadi Bank Ltd. (NBL) With Punjab National Bank (PNB) before and after merger. For this purpose various variables namely, capital, deposits, investments, advances, interest earned, interest paid, total income, total expenditure and net profit have been identified. In the analysis of variables figures for four year prior to merger and figures of variables for four years after the merger have been taken. Figures prior to merger are the total of value of variables of both amalgamating bank (the bank which loses its identity) and amalgamated bank (the bank which continues its existence). The result of regression equation has been found effective after merger of PNB and NBL from the point of view of capital, deposits, advances, interest earned and total income. In the case of investments, fixed assets, interest expenditure, total expenditure, net profit and total assets result of regression equation has been found ineffective. The Null Hypothesis is rejected in all variables except capital, fixed assets and interest expenditure.
VL - 2
IS - 5
ER -

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Author Information

Sriprakash Srivastava

Faculty of Commerce, Banaras Hindu University, Varanasi, (U.P), INDIA
Brajesh Kumar Tiwari

Department of Management Studies, Rajendra Prasad College of Management, Azamgarh (U.P), INDIA

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APA Style

Sriprakash Srivastava, Brajesh Kumar Tiwari. (2013). Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. Journal of World Economic Research, 2(5), 95-103. https://doi.org/10.11648/j.jwer.20130205.13

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ACS Style

Sriprakash Srivastava; Brajesh Kumar Tiwari. Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. J. World Econ. Res. 2013, 2(5), 95-103. doi: 10.11648/j.jwer.20130205.13

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AMA Style

Sriprakash Srivastava, Brajesh Kumar Tiwari. Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks. J World Econ Res. 2013;2(5):95-103. doi: 10.11648/j.jwer.20130205.13

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@article{10.11648/j.jwer.20130205.13,
  author = {Sriprakash Srivastava and Brajesh Kumar Tiwari},
  title = {Special Reference to Merge Nedungandi Bank Ltd on Base of a Case Study about Merging Banks},
  journal = {Journal of World Economic Research},
  volume = {2},
  number = {5},
  pages = {95-103},
  doi = {10.11648/j.jwer.20130205.13},
  url = {https://doi.org/10.11648/j.jwer.20130205.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20130205.13},
  abstract = {A banking merger is just the same as the merger of two companies except that it involves banks. Mergers and Acquisitions (M&A) in the banking sector may be in the form of amalgamation, absorption, consolidation, acquisition or take over. The important point in the bank merger is that banking activities of the participants will always be regulated. In the present study efforts have been made to analyse the effects of M&A on the Financials of the Merger of Nedungadi Bank Ltd. (NBL) With Punjab National Bank (PNB) before and after merger. For this purpose various variables namely, capital, deposits, investments, advances, interest earned, interest paid, total income, total expenditure and net profit have been identified. In the analysis of variables figures for four year prior to merger and figures of variables for four years after the merger have been taken. Figures prior to merger are the total of value of variables of both amalgamating bank (the bank which loses its identity) and amalgamated bank (the bank which continues its existence). The result of regression equation has been found effective after merger of PNB and NBL from the point of view of capital, deposits, advances, interest earned and total income. In the case of investments, fixed assets, interest expenditure, total expenditure, net profit and total assets result of regression equation has been found ineffective. The Null Hypothesis is rejected in all variables except capital, fixed assets and interest expenditure.},
 year = {2013}
}

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