Page 103 - Contributed Paper Session (CPS) - Volume 5
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CPS1111 Jitendra Kumar et al.
for testing is based on credible interval. Using the posterior probability, the
highest posterior density region is obtained as follows
HPD R; P y | t s. P . HPD | y (15)
4. Merger and Acquire in Banking Industry: An application
It is well defined that banking sector has strong contribution in any
economy. It has been adopted various approaches to smooth working in the
global front. Merger and acquisition is one of the finest approaches of
consolidation that offers potential growth in Indian banking. State bank of
India (SBI) is the largest bank in India. Recently SBI merged with five of its
associate banks and Bharatiya mahila bank is becoming the largest lender in
the list of top 50 banks in the world. The combined base of SBI is expected to
increase productivity, reduce geographical risk and enhance operating
efficiency. In India, there are various channels to transfer the payment online.
Mobile banking is one of the important channels to transfer the money using
a mobile device which is introduced since 2002 and become popular after
demonization as it is a very fast and effective performed using smart phone
and tablet. For examine purpose, we have taken monthly data series of mobile
banking of SBI and its associate banks over the period from November 2009
to November 2017. Data series gives information about the number of
transactions with its payment in a specific month for a particular bank. In
analysis, we have converted data into payment per transactions.
The objective of the proposed study is to observe the impact of merger
series. First, fitted an autoregressive model to mobile banking series to find
out the most prefer order (lag) of SBI and its associate merger banks and then
study more inferences. Table 1 shows the descriptive statistics and lag of AR
model with estimated coefficients for each series. Once getting the lag (order)
of each associate series, apply M-AR model to estimate the model parameters
using OLS and Bayesian approach which are recorded in Table 2 and observed
that there may be change in estimated value when considering merger in the
series. From Table 1-2, we observed that there is a negative change happened
due to SBBJ and SBP series because the sign of coefficient value is transform
whereas other remaining series have a positive impact but not much affect on
the SBI series. To know the impact of associate banks series, testing the
presence of merged series and reported in Table 3. Table 3 explained the
connection between associate banks with SBI and observed that banks merger
has a significantly impact of SBI series and after the merger point, there is a
decrease in the mobile banking transactions. All assumed test is correctly
identifying the effect of merger.
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