IMPACT OF MERGER ON THE PERFORMANCE OF BANKING SETOR; A CASE OF STANDARD CHARTERED BANK AND FAYSAL BANK LIMITED (BANKING SECTOR)

Abstract

Purpose: The study aims to determine the impact of merger and acquisition on the profitability of banking sector of Pakistan. Methodology: The study involved use of secondary data through published financial reports for the period considering pre-merger and post-merger comparison. To analyse the data. Regression, ANOVA test were applied. To study the impact, the study consider two mergers for analysis which includes SCB and Union Bank & FBL and RBS. Discussion: Mergers and acquisitions (M/A) in the corporate world has now become a common activity in different industries. These activities has increased due to the after the advent of globalization which gives rise to intense competition. There are a number of reasons why companies go for these activities. Some important motives behind these activities are to reduce cost, increase synergy, develop market etc. Findings: The result shows that, the acquisition activity has not been as profitable for the bank in terms of performance as expected or desired but there may be other motive. After conclusion the research study also arrives at recommendations which help in gaining insight