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Bhavani B S
Asst. Professor, MBA Department
bhavanibs@gmail.com
Rajeev institute of Technology, Hassan
Abstract:+
Since Pre-independence the Indian banking sector has witnessed mergers of three
presidency banks, mergers and acquisitions in banking sector provides opportunities to banks
viz. economies of scale, achieve growth in their operations, decrease the expenses to the
considerable extent, business synergies, increase the productivity level and also satisfy the
customers. In the process of merger & acquisitions Reserve Bank of India play a vital role in
banking system to protect the depositors’ interest, expeditious resolution and avoidance of
regulatory forbearance.
This paper compute the capital structure of the banks in pre-merger and post-merger cases and
finds value of the bank in terms of their debt and equity using capital structure theories, which in
turn impacts the capital structure decisions like EBIT-EPS analysis, ROI-ROE analysis, leverage
analysis, comparative analysis and ratio analysis. The purpose of this paper is to know the impact
of changes in assets and liabilities of the banks on value of the bank.