M IMPACT OF MERGER AND ACQUISITION ON BANKS’ EFFICIENCY IN PAKISTAN

Abstract

There are twenty-three scheduled banks, six Public Sector Scheduled banks, one Non Public Scheduled bank, four specialized scheduled banks, fifteen private banks, seventeen “Islamic Banks, four foreign banks, thirteen microfinance banks, eight development Finance Institutions in Pakistan. National and international Merger and Acquisition is one of the business development approaches to become Market Leader. Pakistani banking zones has shown a number of union and acquirement cases to achieve different objectives. In this investigation a illustration of four banks HBL,Summit ,Faysal and Askari were selected and examined with the aid of SPSS using Paired Sample t-test with due course of Pre-Merger and Acquisition performance with the Marker-merger” and acquisition period. the year 2006 till 2011 were considered as pre-merger and acquisition period and from 2012 till 2018 were considered as Post Merger and acquisition Period. for the purpose of data analysis five variables were selected i.e; CAMEL ratios. CAMEL framework is used by SBP for the evaluation of banking performance. This study revealed a significant variance among Capital adequacy and Asset Quality while insignificant change in Liquidity, Efficiency and Management Soundness of Banks.