A Study of Punjab National Bank (PNB) Financial Performance: Both Pre and Post Merger


Authors : Rupa Prajapati; Dr. Atul Kumar Tiwari

Volume/Issue : Volume 9 - 2024, Issue 6 - June


Google Scholar : https://tinyurl.com/2dn3mcjs

Scribd : https://tinyurl.com/yeyh7t73

DOI : https://doi.org/10.38124/ijisrt/IJISRT24JUN2031

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : The banking sector plays a unique role in the country's economic development. It acts as the key driver of the Indian economy, as no economic activity will sail smoothly without an adequate amount of funding, which is mostly provided by the banking sector. Banks are considered the backbone of the growth and development of the Indian economy, so there is a need to strengthen them. In order to make Indian banks more efficient and effective, the government of India has taken a very crucial step, i.e., the merger of banks. The Indian government has conducted a series of mergers in 2019, combining 10 public sector banks into four larger entities. This paper examines the impact of the merger of Punjab National Bank with Oriental Bank of Commerce and United Bank of India from the year 2017 to 2023. The study has reviewed various research articles in order to understand the impact of the merger on the financial performance of PNB. The pre- and post-merger performance of the bank has been analysed using four parameters: Capital, Assets, Earning and Liquidity. The study shows that the merger of banks has been crucial for improving the overall performance of banks as it enlarges their earning capacity and reduces their NPA.

Keywords : Banking Sector, Portfolio, Economic Prosperity, Merger.

References :

  1. Sai, V. R. N., & Sultan, D. S. T. (2013). Financial performance analysis in Banking sector-A Pre & Post Merger perspective. International Monthly Refereed Journal of Research In Management & Technology2, 56-66.
  2. Sethy, T. K. (2017). Impact of merger on financial performance of banks: A case study of state bank group. International Journal of Technical Research & Science2(6), 338-394.
  3. Javed, S. ACCOUNTING OF POST MERGER FINANCIAL PERFORMANCE OF PUNJAB NATIONAL BANK (PNB) AND NEDUNGADI BANK.
  4. Singh, S., & Das, S. (2018). Impact of post-merger and acquisition activities on the financial performance of banks: A study of Indian private sector and public sector banks. Revista Espacios Magazine39(26), 25.
  5. Agarwal, R., Vichore, S., & Gupta, M. (2019). The effects of mergers and acquisitions on the performance of commercial banks in India. Durgadevi Saraf Institute of Management Studies2(2), 16-31.
  6. https://firmroom.com/blog/reasons-for-mergers-acquisitions
  7. https://hdl.handle.net/10603/550594
  8. https://ijeponline.org/index.php/journal/article/view/464/460 (financial performance of PNB)
  9. Choudhary, D. A., & Vashistha, D. N. (2020). A Study Of Amalgamation Of Oriental Bank Of Commerce And United Bank Of India Into Punjab National Bank. Journal of Emerging Technologies and Innovative Research7(11).
  10. https://in.investing.com/equities/punjab-national-bank-financial-summary?period_type=annually
  11. Agarwal, Ayushi & Yadaw, Prannath & Singhal, Prof & Ojha, Dr. (2023). Mergers And Acquisitions In Indian Banking Sector. 11. b902-b911.
  12. https://www.google.com/amp/s/testbook.com/amp/banking-awareness/public-sector-banks-merger

The banking sector plays a unique role in the country's economic development. It acts as the key driver of the Indian economy, as no economic activity will sail smoothly without an adequate amount of funding, which is mostly provided by the banking sector. Banks are considered the backbone of the growth and development of the Indian economy, so there is a need to strengthen them. In order to make Indian banks more efficient and effective, the government of India has taken a very crucial step, i.e., the merger of banks. The Indian government has conducted a series of mergers in 2019, combining 10 public sector banks into four larger entities. This paper examines the impact of the merger of Punjab National Bank with Oriental Bank of Commerce and United Bank of India from the year 2017 to 2023. The study has reviewed various research articles in order to understand the impact of the merger on the financial performance of PNB. The pre- and post-merger performance of the bank has been analysed using four parameters: Capital, Assets, Earning and Liquidity. The study shows that the merger of banks has been crucial for improving the overall performance of banks as it enlarges their earning capacity and reduces their NPA.

Keywords : Banking Sector, Portfolio, Economic Prosperity, Merger.

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