BANK MERGERS AND ACQUISITIONS LEAD TO EFFICIENCY GAINS; THE CASE STUDIES OF BANK MERGERS AND ACQUISITIONS IN PAKISTAN

Abstract

This research paper defines the impact of merger and acquisition of lead to efficiency gain. In this research I used the ratio analyze in order to find out the financial performance of Standard chartered bank and Nib bank after merger and acquisition. And also ratios help the investor in making the right investment decisions. This is only technique which gives the quick information for the progress of Standard chartered bank and Nib bank. And all the financial information is taken from the annual reports. According to their financial progress it is clearly shown that their decision of taking the acquisition and merger has not been successful. This result shows that the financial performance of both bank in the area of profitability, asset management, and cash flows has not been satisfactory after merger. However in the past many mergers in the banks have shown their result in the failure way and both banks shows that their decision was not very successful and it may become the top ten banks after mergers and acquisition in terms of size but gave not gain efficiency.