A STUDY ON EFFICIENCY OF MERGER AS A TOOL FOR FINANCIAL DISTRESS IN INDIAN PUBLIC SECTOR BANKS

Merger has become an efficient tool to cop up with financial difficulties in all the industries. In past few years Indian banking Industry is going through so many merger and the recent merger which has been taken place is of bank of Baroda, Dena Bank and Vijaya Bank. This study has been conducted to know the effectiveness of Merger to cope up which financial distress in these selected banks in terms of their Non-Performing Assets. The study has two objectives one is to understand the concept of Non-Performing Assets of Indian banks and second is to examine the impact of merger on financial performance of selected Indian public sector banks. For the analysis for factors i.e. Gross NPA, Net NPA, Percentage of Gross NPA, Percentage of Net NPA and Net Profit or Loss have been considered for the period of ten financial years which was divided into before and after merger period as the merger of selected banks was took place in 2019. The results of the study show that there is a significance difference between the before merger performance and after merger performance of the selected banks.