SYNOPSIS

1: - Name : Muskan Kaushal

2: - Roll No. : 6414
3: - Course : MBA (GB) II year
4: - Institution : Khalsa College
5: - Name of the Projet !ui"e : Prof. Amrital Kaur
#: - $itle of the Projet : !M"#G"#$ A%& AC'(I$I)I*%$ I%
BA%KI%G $"C)*#+ A CA$" $)(&, *-
$"."C)"& BA%K$/
%: - Sam&le seletion : 1. Merger of Bank of #a0asthan 1ith
ICICI Bank in 12 August3 4515.
4. A67uisition of Centurian Bank of
Pun0a8 8y 9&-C 8ank in 42 May3 455:.
2. A67uisition of (nite; <estern Bank
.t; 8y I&BI Bank in 2 *6t3 4556.
'ate : (Si)nature of the stu"ent*
+PPRO,+- R.COR'
($o /e om&lete" at 0halsa Colle)e1 Patiala*
+&&ro2e"3 Not +&&ro2e" (Si)nature of a&&ro2in) authorit4 stam&*
$I$-. O5 $6. PRO7.C$:-
!8.R!.RS +N' +C9:ISI$IONS IN ;+N0IN!
S.C$OR
- + C+S. S$:'Y O5 S.-.C$.' ;+N0S<
S$+$.8.N$ O5 $6. PRO;-.8:-
Bank in general terminology is ;es6ri8e; as finan6ial institute or a 6ororation 1hi6h is
authori=e; 8y the state or 6entral go>ernment to ;eal 1ith money 8y a66eting ;eosits3
gi>ing out loan an; in>esting in se6urities. <ith the 6hanging "n>ironment many ;ifferent
strategies ha>e 8een a;ote; 8y this se6tor to remain effi6ient an; to surge ahea; in the
glo8al arena. *ne su6h strategy is through the ro6ess of 6onsoli;ation of 8anks emerge; as
one of the most rofita8le strategy.
)here are se>eral 1ays to 6onsoli;ate the 8anking in;ustry? the most 6ommonly a;ote; 8y
8anks is merger. Merger of t1o 1eaker 8anks or merger of one health Bank 1ith one 1eak
8ank 6an 8e treate; as the faster an; less 6ostly 1ay to imro>e rofita8ility then surring
internal gro1th (-ran=3 9.Khan 455@).)he main moti>e 8ehin; the merger an; a67uisition in
the 8anking in;ustry is to a6hie>e e6onomies of s6ale an; s6oe.
In the In;ian 8anking in;ustry ha>ing far 8etter osition than it 1as at the time of
6rises.Go>ernment has taken >arious initiati>es to strengthen the finan6ial system. )he
e6onomi6 re6o>ery gaine; strength on the 8ank of a >ariety of monetary oli6y initiati>es
taken 8y the #BI.
=6Y I C6OOS. $6IS $OPIC:-
I am a stu;ent of Khalsa College3 Patiala an; ha>e 8een o8ser>ing these 6hanges in finan6ial
erforman6e of In;ian 8anking se6tor after A 8efore merger an; a67uisitions (MAAs) of the
8anks. )o stu;y the finan6ial erforman6e of the $ele6te; Banks in the re an; ost erio;
of merger A a67uisition
As a stu;ent of M.B.A (GB) 4
n;
year I am intereste; in the 8anking se6tor3 so this ro0e6t 1ill
hel to un;erstan; the 1orks ha>e 8een ;one on tren;s3 oli6ies A their frame1ork3 human
ase6t 1hi6h is nee;e; to 8e in>estigate;3 1hereas rofita8ility an; finan6ial analysis of the
mergers ha>e not gi>e ;ue imortan6e an; also I 6oul; get an on han; eBerien6e to 6arry out
a ro0e6t taking a ma0or toi6 in -inan6e. )he learning eBerien6e 1ill a;; a lot of >alue to
my kno1le;ge gaine; though the 6ourse 6urri6ulum.
=6+$ CON$RI;:$ION =O:-' $6. PRO7.C$ 8+0. +N' $O
=6O8 >-
#esults of my ro0e6t an; analysis 1oul; ro>i;e >ery useful tool A information for gro1th
an; eBansion in the In;ian 8anking se6tor. It is helful for sur>i>al of 1eak 8anks 8y
merging into larger 8ank. )his stu;y sho1s the ima6t of MAAs in the In;ian 8anking se6tor
an; I took three 6ases for the stu;y as samle an; eBamine that merger le; to a rofita8le
situation or not.
-or this a 6omarison 8et1een re an; ost merger erforman6e in terms of gross rofit
margin3 net rofit margin3 oerating rofit margin3 return on 6aital emloye;3 return on
e7uity3 an; ;e8t e7uity ratio. )he erforman6e of all sele6te; 8ank (three years 8efore)
merger an; the erforman6e of a67uiring 8ank (after three years) merger ha>e 6omare;.
O;7.C$I,.S O5 $6. S$:'Y:-
)here are >arious o80e6ti>es of the stu;y3 1hi6h are as follo1sC+
D )o stu;y the net rofita8ility of the $ele6te; Banks in the re an; ost erio; of merger A
a67uisition
D )o analy=e the erforman6e of $ele6te; Banks after merger A a67uisitions in terms of
return on 6aital emloye;.
D )o eBamine the ima6t of merger A a67uisition on e7uity share hol;erEs A ;e8t+e7uity
osition of $ele6te; Banks.
R.S.+RC6 8.$6O'O-O!Y:-
'+$+ CO--.C$ION:-
-or the urose of the stu;y !mergers an; a67uisitions in In;ian Banking se6tor+ A 6ase
stu;y of sele6te; Banks/ the se6on;ary ;ata ha>e 8een 6olle6te; for the resear6h 1ork.
-or ratio analysis the ;ata 6olle6te; from sele6te; BankEs 8alan6e sheets an; rofit an; loss
a66ounts.
S+8P-. S.-.C$ION:-
1. Merger of Bank *f #a0asthan 1ith ICICI Bank in 12August3 4515.
4. A67uisition of Centurian Bank of Pun0a8 8y 9&-C 8ank in 42 May3 455:.
2. A67uisition of (nite; <estern Bank lt; 8y I&BI Bank in 2 *6t34556.
P.RIO' O5 $6. S$:'Y:-
)he resent stu;y is mainly inten;e; to eBamine the finan6ial erforman6e of merge;
Banks for three years 8efore merger an; three years after merger.
8.$6O'O-O!Y:-
<e ha>e a;ote; the metho;ology of 6omaring re an; ost merger erforman6e of
6omanies3 using the follo1ing finan6ial ratiosC
D Gross Profit Margin F Gross ProfitG$ales H 155
D %et Profit Margin F %et ProfitG$ales H 155
D *erating Profit Margin F *erating ProfitG$ales H 155
D #eturn on 6aital "mloye; (#*C")
#*C" F ( PB&I) G %et Assets ) I 155 3 1here PB&I) F Profit 8efore
&ere6iation 3 Interest an; )aBes
D #eturn on %et 1orth (#*%< )
#*%< F ( PA) G %et 1orth ) I 155 3 1here PA) F rofit after taB
DProfit margin (PM )
DJ &e8t "7uity ratio ( &G " )
&G " F )otal ;e8t G %et 1orth
C6+P$.R SC6.8.
)he 6hater s6heme in the ro0e6t reort is lanne; to 8e un;erC
Cha&ter 1 Intro;u6tion
Cha&ter 2 #e>ie1 of .iterature
Cha&ter 3 #esear6h Metho;ology
Cha&ter 4 &ata Analysis an; Interretation
Cha&ter 5 -in;ings of the stu;y
Cha&ter # $uggestion an; #e6ommen;ations
Cha&ter % Con6lusion
Cha&ter ? Bi8liograhy