An Analysis of Financial Performance of Bank of Baroda after Merger

Purpose- The purpose of this study is to examine the post-merger financial performance and profitability of Bank of Baroda. The study aims to assess whether the merger has led to improvements in operational efficiency, asset quality, capital strength, and shareholder value during the post-merger period from 2021–22 to 2024–25. Methodology- The study employs a descriptive and analytical research design, utilizing secondary data. Financial data have been collected from the annual reports of the Bank of Baroda and other authenticated financial sources. Key financial indicators such as gross and net operating profit (ROA), ROE, EPS, CAR, and gross and net non-performing assets (NPA) have been analyzed to evaluate the financial performance of the bank. The use of these indicators is supported by previous studies such as M. Prasad Rao and Posetty Naveen Kumar (2025), Rani and Sangeeta (2023), and Sengar (2020), who employed similar financial ratios, including EPS, to assess financial performance. Comparative analysis and graphical techniques have been employed to assess changes in financial performance over the selected post-merger period. Findings- The findings reveal a significant improvement in the financial performance of Bank of Baroda during the post-merger period. The bank has demonstrated continuous growth in operating profits, indicating enhanced operational efficiency. Asset quality has improved considerably, as reflected by a consistent decline in gross and net NPAs, suggesting effective credit risk management and recovery mechanisms. The capital adequacy ratio has remained well above regulatory norms, highlighting a strong capital base and financial resilience. Furthermore, rising earnings per share, along with improvements in ROA and ROE, indicate enhanced profitability, efficient utilization of assets and equity, and increased shareholder value. Overall, the results suggest that the merger has had a favorable impact on the bank’s financial stability and long-term growth. Originality/Value—This study contributes to the existing literature by providing a focused, bank-specific, and recent post-merger analysis of Bank of Baroda over an extended period of four financial years. Unlike earlier studies that primarily emphasize short-term or pre- and post-merger comparisons, this research examines the stabilization and growth phase of merger integration. The study offers valuable insights for banking professionals, researchers, and investors by demonstrating the effectiveness of bank mergers as a strategic tool for strengthening financial performance in the Indian public sector banking system.