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The present study aims to shed some light on the gains from consolidation exercise in terms of profitability of banks. Through the application of paired t-test, we arrived at the result that the consolidation of banks did improve the profitability of banks in India. The increase in profitability of banks under study is due to an increase in employee turnover and the subsequent reduction in operating expenses. Merger and acquisition programmes in Indian banks cannot be regarded as a false step if the benefits of it accrue to all stakeholders.
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