Impact of Bank Mergers on the Efficiency of Banks: A study of merger of Bharat Overseas Bank with Indian Overseas Bank

After the implementation of reform measures, there has been large changes in the philosophy, perceptions, and functioning of commercial banks and banks are expected to manage the large inflows and outflows of financial resources. Therefore a strong banking system through consolidation is required. Under such situations, it is necessary to study the impact of consolidation on different profitability and efficiency parameters of the banks. In the paper the attempt is made to compare the pre-merger and post-merger performance of Bharat Overseas Bank and Indian Overseas Bank by comparing different efficiency parameters like Profit Per employee, Business Per Employee, Investment and Advances, Interest Income, Return on Assets, NPAs etc. The study concluded that after merger there is improvement in all the parameters of the banks.