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Bhattacharya, Mousumi
- Financial Performance Analysis of New Generation Private Sector Banks: A Camel Model Approach in Indian Context
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1 IIM Shillong, Meghalaya, IN
1 IIM Shillong, Meghalaya, IN
Source
Journal of Commerce and Accounting Research, Vol 9, No 4 (2020), Pagination: 37-44Abstract
The banking sector in Indian context has been witnessing several dynamic changes from time to time. It forms an imperative constituent of any financial & economic system. The predominance of public sector banks (PSBs) in the industry has reduced considerably as private sector banks (PVBs) are accomplished to build up a sound position within the industry by utilizing technology and skilled management. The Indian banking sector has been experiencing several dynamic structural changes with the introduction of new generation banks in the private sector. Over time the ranking and position of banks have changed due to the change in the banks’ performance. The research article aims to measure the performance of the new generation private banks in India using the CAMEL model approach. The research study used secondary data. Selective ratios representing the CAMEL model are employed to scrutinize and compare the performance of the ten private banks-ICICI, Axis, HDFC, YES, Kotak Mahindra, IndusInd, IDBI, Bandhan, IDFC FIRST and DCB. The data has been collected from MoneyControl and annual reports of respective banks over five years (from 2014-15 to 2018-19). Based on the overall rank, the study has found that the Bandhan bank is leading followed by HDFC bank and others. Based on one way ANOVA, the study found considerable variation in the performance across the banks. The study may be beneficial to the stakeholders in taking suitable decisions related to these banks.Keywords
New Generation Private Banks, Performance Analysis, CAMEL Model, Ratios.
- Synergy Valuation in Mergers and Acquisitions in the Steel Industry: An Indian Context
Abstract Views :91 |
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Authors
Affiliations
1 IIM Shillong, Meghalaya, IN
2 Associate Professor, IIM Shillong, Meghalaya, IN
1 IIM Shillong, Meghalaya, IN
2 Associate Professor, IIM Shillong, Meghalaya, IN
Source
Journal of Commerce and Accounting Research, Vol 11, No 1 (2022), Pagination: 87-95Abstract
This study attempts to value synergy gains in the mergers and acquisitions in the Indian steel industry. To value synergy, a neural network model has been created, where the change in financial ratios are the independent variables the value of the target company is the dependent variable. Along with the neural network, event study has been carried out, where cumulative abnormal returns (CAR) has been calculated to see if the acquiring companies’ shareholders gain wealth post the M&A transaction. This helps in understanding if the shareholders see merit in the transaction. For creating the model and to calculate CAR, the data from 2000-2019 has been taken from the Bloomberg terminal. The data consists of 30 M&A transactions in the steel industry in India. The results of the neural network indicate that the acquiring companies end up over paying for the synergy gains and the results of the event study show that the acquiring companies’ shareholders do not gain any wealth post the M&A transaction. The results will help managers in valuing the target companies for M&A in the future.Keywords
Mergers and Acquisitions, Steel Industry, Neural Network, Event Study, Cumulative Abnormal ReturnsReferences
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