Impact of Merger on Efficiency of Indian Commercial Banks: A Study on Merger of Oriental Bank of Commerce and Global Trust Bank

Abstract

The study has been undertaken to empirically analyze and assess the impact of merger of Oriental Bank of Commerce and Global Trust Bank on the efficiency of said banks in terms of different financial parameters. Most of the financial indicators of Oriental Bank of Commerce and Global Trust Bank display noteworthy improvement in their operational performance during post merger period. Therefore, the results of the study reveal that average financial ratios of sampled banks in Indian banking sector showed a notable and important improvement in terms of liquidity, profitability, and stakeholders wealth.

Keywords: Merger, India, Oriental Bank of Commerce, Global Trust Bank, efficiency.