From Amalgamation to Analysis: Investigating Bank of Baroda's Financial Performance Post Merger

The merger of Bank of Baroda with Dena Bank and Vijaya Bank in April 2019 marked a significant move in the Indian banking sector towards consolidation, efficiency, and resilience. This study evaluates the short-term financial performance of the merged entity using the CAMEL framework, covering Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity indicators. A comparative analysis was conducted for the years 2018–19 (pre-merger) and 2020–21 (post-merger), followed by a paired t-test to determine the statistical significance of observed changes. Although numerical improvements were found in most indicators, including capital adequacy, profitability, and employee productivity, the results of hypothesis testing showed that these improvements were not statistically significant at the 5% level. The study highlights the challenges of post-merger integration, the burden of legacy NPAs, and the importance of long-term evaluation frameworks. Policy recommendations emphasize the need for structured integration planning, asset cleansing mechanisms, and human resource alignment. The findings suggest that while mergers hold potential for long-term transformation, their short-term impact remains modest and requires patient policy and institutional support.