A Study on  Dupont Model and Financial  Performance of State Bank of India before and after Merger

Abstract

All businesses usually prioritize growth, and to do this, they often engage in merger and acquisition activity (M&A) in order to increase profits and market share. Businesses need mergers and acquisitions (M&As) to achieve economies of scale, expansion, diversification, synergy, and financial planning. The globalization of the economy and monopolistic business practices further spur interest in M&As among corporations looking to gain more market share. The current paper's goal is to examine the numerous reasons why mergers in the Indian banking industry continue to happen after reforms got underway. This covers a variety of bank merger-related elements. With the use of financial indicators including gross profit margin, net profit margin, operating profit margin, return on capital employed, return on equity, and debt-equity ratio, the article examines the pre- and post-merger financial performance of State bank of India which got its associate banks merged with its parent entity.