Centres Of Excellence

To focus on new and emerging areas of research and education, Centres of Excellence have been established within the Institute. These ‘virtual' centres draw on resources from its stakeholders, and interact with them to enhance core competencies

Read More >>

Faculty

Faculty members at IIMB generate knowledge through cutting-edge research in all functional areas of management that would benefit public and private sector companies, and government and society in general.

Read More >>

IIMB Management Review

Journal of Indian Institute of Management Bangalore

IIM Bangalore offers Degree-Granting Programmes, a Diploma Programme, Certificate Programmes and Executive Education Programmes and specialised courses in areas such as entrepreneurship and public policy.

Read More >>

About IIMB

The Indian Institute of Management Bangalore (IIMB) believes in building leaders through holistic, transformative and innovative education

Read More >>

Efficiency, scale economies and valuation effects: evidence from bank mergers in India

Rudra Sensarma, M Jayadev
Journal Name
Int. J Financial Services Management
Journal Publication
others
Publication Year
2010
Decision Sciences and Information Systems
Publication Date
Vol. 4, No. 4, PP 311-337, 2010
Abstract

This paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state-owned banks from consolidation. Scale economies, returns to scale and profit efficiency of state-owned banks during 1986 to 2007 are estimated based on stochastic frontier analysis. We find that many Indian banks exhibit potential cost savings from mergers, provided they rationalise their branch networks although profit efficiency may not rise immediately.

Efficiency, scale economies and valuation effects: evidence from bank mergers in India

Author(s) Name: Rudra Sensarma, M Jayadev
Journal Name: Int. J Financial Services Management
Volume: Vol. 4, No. 4, PP 311-337, 2010
Year of Publication: 2010
Abstract:

This paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state-owned banks from consolidation. Scale economies, returns to scale and profit efficiency of state-owned banks during 1986 to 2007 are estimated based on stochastic frontier analysis. We find that many Indian banks exhibit potential cost savings from mergers, provided they rationalise their branch networks although profit efficiency may not rise immediately.