Evaluating the impact of financial performance of merged banks of India on economic growth
Jay A Sathavara, Jayesh G Poojara
The objective of this research paper was to evaluate impact of financial performance of recently merged bank of India on Indian economy. On 1st April 2019 two public sector banks namely Vijya Bank and Dena bank merged with Bank of Baroda so sample for this research paper are these three banks. In this research seven financial independent variables of recently merged banks and three dependent variables were used to evaluate impact of financial performance on growth of economy of India over the period from 2010 to 2019. Descriptive analysis was used to describe the variables of the research. Pearson correlation test was used to check significant relationship between the variables at 1% and 5% significant level and result showed that seven variable has significant relationship out of ten variables. Regression analysis was also used and result showed that independent financial variable has significant impact on dependent variables except fiscal balance % of GDP at 1%, 5% and 10% significant levels. Out of seven independent variable six variables has statistically significant impact on GDP except growth of deposits. Similarly all financial variables have significant impact with CPI except Credit to deposit ratio, growth in deposit ratio and change in number of branches ratio. From the above study it is recommended that banks should pay attention on growth of advances, profit per employee and return on assets for strong and better economy of India. Further study can be done with all the public and private sector banks to evaluate impact of financial performance on economy.
Jay A Sathavara, Jayesh G Poojara. Evaluating the impact of financial performance of merged banks of India on economic growth. International Journal of Commerce and Management Research, Volume 7, Issue 3, 2021, Pages 45-48