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ZENITH International Journal of Business Economics & Management Research
Year : 2012, Volume : 2, Issue : 5
First page : ( 83) Last page : ( 97)
Online ISSN : 2249-8826.

Impact of M & As on shareholders’ wealth: Evidence from the Indian banking sector

Raul Anam Charan

Faculty in Finance, RIMS, Rourkela, India.

Abstract

A burgeoning economy, financial sector reform, rising foreign investment, favorable regulatory climate and demographic profile has lead to India becoming one of the fastest growing banking markets in the world. This paper presents an empirical investigation of various banks M & As in India. The investigation contains an assessment of value addition to shareholders of Banks in India after merger by using three value added metrics, like EVA, MVA and RONW. This paper also assesses the motives of merger of the banks by using various financial ratios both in pre- and post-merger periods. Four public merged banks (SBI, BOB, OBC, PNB) and Four private merged banks (ICICI Bank, Indusind Bank, HDFC and IDBI Bank Ltd.) are taken for this study.

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Keywords

Mergers, Acquisitions, Shareholders Value, EVA, MVA, RONW.

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