A Study on Customer Feedback about Centurion Bank
A Study on Customer Feedback about Centurion Bank
Abstract
With the changing environment, the banking sector has adopted a variety of strategies to remain efficient and to stay competitive in the global arena. Mergers and acquisitions in the banking sector allow banks to expand their operations, reduce their costs, and reduce competition by eliminating competitors from the banking industry. Before and after merger analysis shows that Gross Profit Margin, Net Profit Margin, Return on Capital Employed, Return on Equity and Debit-Equity Ratio all show an upward trend, but Operating Profit Margin shows a mixed trend after merging with HDFC Bank. After the merger, there was a significant difference in Gross Profit Margin and Net Profit Margin, as well as a significant difference in Return on Equity and the Debt-Equity Ratio, according to the study's findings.
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Introduction
Any financial institution or corporation authorized by the government to deal with money by accepting deposits, disbursing loans, and investing in securities is known as a bank. Banks play an important role in economic growth, economic expansion, and providing funds for investments. In recent years, the banking industry has undergone a number of regulatory and globalization-related changes. These changes have had a structural and strategic impact on this industry.
Many different strategies have been adopted by this sector as a result of the changing environment in order to remain efficient and to remain competitive in the global arena. Through the process of bank consolidation, one of the most profitable strategies was developed. Many ways exist to consolidate the banking industry, but merger is the most commonly used method by banks (Devarajappa, 2012).
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Conclusion
Financial institutions benefit greatly from mergers and acquisitions. As a result of the merging entities' involvement in similar activities, mergers in the banking sector are a horizontal merger. Mergers and acquisitions in the banking sector allow banks to expand their operations significantly, reduce their costs to a great extent, and reduce competition by eliminating competitors from the banking industry. Before and after merger, the Gross Profit Margin, Net Profit Margin, Return on Capital Employed, Return on Equity and Debit-Equity Ratio all show an upward trend, but the Operating Profit Margin shows a mixed pattern.
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