An Analysis of the Effect of Merger of Western Union Bank with Industrial Development Bank of India during Post Liberalized Regime

Abstract

The article critically analyzes and evaluates the impact of merger of Western Union Bank with IDBI during Post Liberalization Regime in terms of different parameters with special reference to merger and acquisition. The study has further attempted to investigate and test whether there exist any significant deviations in the results achieved by the banks after merger. For conducting the study, Shapiro-Wilk normality test and Wilcoxon Paired Sign-Rank test was conducted for factors not following normal distribution. Thereafter, we compared means of the performance parameter over time i.e. before the merger vs after the merger. T-test and Wilcoxon test were chosen because those are popularly used for computing pre-post analysis of a phenomenon. The different parameters chosen for study were ROA, CDR, IDR, PSA, DPE, APE, IITI, NIITI, IETE, EETE, OOETE, STA, IIAWF, NIIAWF, OPAWF, NNPANA, CAR. Paired Samples t Test suggests that there is significant difference in case of only a few pre and post merger financial parameters and most of the financial parameters undertaken in our study do not have any significant pre and post difference in operating performance level.