Impact of merger on profitability and non-performing assets Management in Indian Banking Sector- A Study on State Bank of India

Stable economy of every country is depends on banking companies, in modern era an individual cannot imagine their life without bank because money is everything to an individual. Bank is base for proper flow of money in an economy. In Indian banking sector it comprises with co-operative banks, commercial banks and others. Now day’s commercial banks are playing vital role in our country. The whole commercial banks are broadly divided into two viz. public and private sector bank. In public sector state bank of India is larges and prominent bank in public sector. State bank of India early year it was named as imperial bank of India. And state bank of Mysore established in the year 1913 the major contributor for establishment of this bank is Sir. M.Visvesvarayya, Maharaja of Mysore Sri Krishna Raja Wadiyar. The State bank of Mysore started for the purpose of undertaking Government business and other treasury operations. Merger refers to two or more existing companies merge into one existing or newly formed company. Merger takes place to attain synergy, reduce competition, cut promotional expenses, avoid price exploitation etc. the five associate banks i.e State bank of Mysore, state bank of Bikaner, state bank of Travancore, state bank of Hyderabad, state bank of Patiala and Bharatiya Mahila bank merged in state bank of India on 1st April 2017.