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MERGERS AND ACQUISITIONS IN INDIAN BANKING

SECTOR

Submitted in partial fulfillment of the requirements of the degree ofB.A. (H)Business Economics

By:

ChiragAggarwal (10071208005)

Rachit Sachdeva (10071208019)

Harjeet Singh (2045)

Neeraj Garg (2048)

Supervisor:

Mr. Abhishek Kumar

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ACKNOWLEDGEMENT

A successful and satisfactory completion of any project is the outcome of invaluable and

aggregate contribution of personal skill in the radical direction and the guidance of the concerned

Authorities. Even the best efforts are wasted without a proper guidance and advice. The success

of any project is the result of hard work, dedication and the support of the well wishers. It is our

proud privilege to express our sincere gratitude to all those who helped us directly or indirectly

in completion of this project report. We are greatly indebted to AssistantProfessor Abhishek

kumar for his support, guidance and valuable suggestions by which this work has been

completed effectively and efficiently. These all contributions are of immense value.

Last but not least, we are indebted to those people who indirectly contributed and without them

this work would not have been possible. Endeavour has been made to make the project error free

yet, we apologize for the mistakes.

Chirag Aggarwal (2024)

Rachit Sachdeva (2042)

Harjeet Singh (2045)

Neeraj Garg (2048)

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INDEX

S.No. Particulars Page No.

1. ABSTRACT 4

2. INTRODUCTION 5

3. EMPERICAL RESEARCH 6

4. SCOPE AND OBJECTIVES OF THE STUDY 8

5. MERGER 9

6. TYPES OF MERGERS 10

7. ACQUISITION 13

8. TYPES OF ACQUITIONS 14

9. PURPOSE OF MERGERS AND ACQUISITION 17

10. BENEFITS OF MERGERS AND ACQUISITION 19

11. ECONOMIC THEORY 23

12. LIMITATIONS 24

13. HYPOTHESIS TESTING 25

14. METHODOLOGY 27

15. CONCLUSIONS 31

16. BIBLIOGRAPHY 46

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ABSTRACT

The project aims to understand the behavior of various Mergers and Acquisitions in Indian

Banking Sector. A large number of international and domestic banks all over the world are

engaged in merger and acquisition activities. One of the principal objectives behind the mergers

and acquisitions in the banking sector is to reap the benefits ofeconomies of scale. In the recent

times, there have been numerous reports in the media on the Indian Banking Industry Reports

have been on a variety of topics. The topics have been ranging from issues such as user

friendliness of Indian banks, preparedness of banks to meet the fast approaching Basel II

deadline, increasing foray of Indian banks in the overseas markets targeting inorganic growth.

Mergers and Acquisitions is the only way for gaining competitive advantage domestically and

internationally and as such the whole range of industries are looking to strategic acquisitions

within India and abroad. In order to attain the economies of scale and also to combat the

unhealthy competition within the sector besides emerging as a competitive force to reckon with

in the International economy. Consolidation of Indian banking sector through mergers and

acquisitions on commercial considerations and business strategiesis the essential pre-requisite.

Today, the banking industry is counted among the rapidly growing industries in India. It has

transformed itself from a sluggish business entity to a dynamic industry. The growth rate in thissector is remarkable and therefore, it has become the most preferred banking destinations for

international investors. In the last two decade, there have been paradigm shift in Indian banking

industries. The Indian banking sector is growing at an astonishing pace. A relatively new

dimension in the Indian banking industry is accelerated through mergers and acquisitions. It will

enable banks to achieve world class status and throw greater value to the stakeholders.

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INTRODUCTION

The process of mergers and acquisitions has gained substantial importance in today's corporate

world. This process is extensively used for restructuring the business organizations.

In India, the concept of mergers and acquisitions was initiated by the government bodies. Some

well known financial organizations also took the necessary initiatives to restructure the corporate

sector of India by adopting the mergers and acquisitions policies.

The Indian economic reform since 1991 has opened up a whole lot of challenges both in the

domestic and international spheres. The increased competition in the global market has prompted

the Indian companies to go for mergers and acquisitions as an important strategic choice.

The trends of mergers and acquisitions in India have changed over the years. The immediate

effects of the mergers and acquisitions have also been diverse across the various sectors of the

Indian economy.

India has emerged as one of the top countries with respect to merger and acquisition deals. In

2007, the first two months alone accounted for merger and acquisition deals worth $40 billion in

India.

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EMPERICAL RESEARCH

Under this study various researchers reviewed research papers for the purpose of providing an

insight into the work related to Merger and Acquisitions (M&As). After going through the

available relevant literature on M&As and it comes to know that most of the work done high

lightened the impact of M&As on different aspects of the companies. A firm can achieve growth

both internally and externally. Internal growth may be achieved by expanding its operation or by

establishing new units, and external growth may be in the form of Merger and Acquisitions

(M&As), Takeover, Joint venture, Amalgamation etc. Many studies have investigated the

various reasons for Merger and Acquisitions (M&As) to take place, Just to look the effects of

Merger and Acquisitions on Indian financial services sector.

The work ofRao and Rao (1987) is one of the earlier attempts to analyse mergers in India from

a sample of 94 mergers orders passed during 1970-86 by the MRTP Act 1969. In the post 1991

period, several researchers have attempted to study M&As in India. Some of these prominent

studies are; Beena (1998), Roy (1999), Das (2000), Saple (2000), Basant (2000), Kumar (2000),

Pawaskar (2001) and Mantravedi and Reddy (2008).

Sinha Pankaj & Gupta Sushant (2011) studied a pre and post analysis of firms and concluded

that it had positive effect as their profitability, in most of the cases deteriorated liquidity. After

the period of few years of Merger and Acquisitions (M&As) it came to the point that companies

may have been able to leverage the synergies arising out of the merger and Acquisition that have

not been able to manage their liquidity. Study showed the comparison of pre and post analysis of

the firms. It also indicated the positive effects on the basis of some financial parameter like

Earnings before Interest and Tax (EBIT), Return on share holder funds, Profit margin, Interest

Coverage, Current Ratio and Cost Efficiency etc.

Kuriakose Sony & Gireesh Kumar G. S (2010) in their paper, they assessed the strategic and

financial similarities of merged Banks, and relevant financial variables of respective Banks were

considered to assess their relatedness. The result of the study found that only private sector banks

are in favor of the voluntary merger wave in the Indian Banking Sector and public sector Bank

are reluctant toward their type of restructuring. Target Banks are more leverage (dissimilarity)

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than bidder Banks, so the merger lead to attain optimum capital Structure for the bidders and

asset quality of target firms is very poor.

Anand Manoj & Singh J agandeep (2008) studied the impact of merger announcements of five

banks in the Indian Banking Sector on the share holder bank. These mergers were the Times

Bank merged with the HDFC Bank, the Bank of Madurai with the ICICI Bank, the ICICI Ltd

with the ICICI Bank, the Global Trust Bank merged with the Oriental Bank of commerce and the

Bank of Punjab merged with the centurion Bank. The announcement of merger of Bank had

positive and significant impact on share holders wealth.

Mantravadi Pramod & Reddy A. Vidyadhar (2007) evaluated that the impact of merger on the

operating performance of acquiring firms in different industries by using pre and post financial

ratio to examine the effect of merger on firms. They selected all mergers involved in public

limited and traded companies in India between 1991 and 2003, result suggested that there were

little variation in terms of impact as operating performance after merger.

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SCOPE AND OBJECTIVES OF THE STUDY

To find out the impact of merger on companys stock. To examine the effects of merger on equity share holders. To examine the main factor affecting performance of company, before merger, and after

merger.

To study the relation between market (CNX BANK NIFTY) and company. To study other variables affecting companys operations and net returns to stock.

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MERGER

Merger is defined as combination of two or more companies into a single company where one

survives and the others lose their corporate existence. The survivor acquires all the assets as well

as liabilities of the merged company or companies. Generally, the surviving company is the

buyer, which retains its identity, and the extinguished company is the seller. Merger is also

defined as amalgamation. Merger is the fusion of two or more existing companies. All assets,

liabilities and the stock of one company stand transferred to Transferee Company in

consideration of payment in the form of:

Equity shares in the transferee company, Debentures in the transferee company, Cash, or

A mix of the above modes.

Merger is a financial tool that is used for enhancing long-term profitability by expanding their

operations. Mergers occur when the merging companies have their mutual consent as different

from acquisitions, which can take the form of a hostile takeover.

Managers are concerned with improving operations of the company, managing the affairs of the

company effectively for all round gains and growth of the company which will provide them

better deals in raising their status, perks and fringe benefits. If we trace back to history, it is

observed that very few mergers have actually added to the share value of the acquiring company

and corporate mergers may promote monopolistic practices by reducing costs, taxes etc.

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TYPES OF MERGERS

Merger or acquisition depends upon the purpose of the offeror company it wants to achieve.

Based on the offerors objectives profile, combinations could be vertical, horizontal, circular and

conglomeratic as precisely described below with reference to the purpose in view of the offeror

company.

(A) Horizontal combination:

It is a merger of two competing firms which are at the same stage of industrial process. The

acquiring firm belongs to the same industry as the target company. The main purpose of such

mergers is to obtain economies of scale in production by eliminating duplication of facilities and

the operations and broadening the product line, reduction in investment in working capital,

elimination in competition concentration in product, reduction in advertising costs, increase in

market segments and exercise better control on market.

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(B) Vertical combination

A company would like to take over another company or seek its merger with that company to

expand espousing backward integration to assimilate the resources of supply and forward

integration towards market outlets. The acquiring company through merger of another unit

attempts on reduction of inventories of raw material and finished goods, implements its

production plans as per the objectives and economizes on working capital investments. In other

words, in vertical combinations, the merging undertaking would be either a supplier or a buyer

using its product as intermediary material for final production.

The following main benefits accrue from the vertical combination to the acquirer company:

1. It gains a strong position because of imperfect market of the intermediary products, scarcity of

resources and purchased products;

2. Has control over products specifications.

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(C) Circular combination:

Companies producing distinct products seek amalgamation to share common distribution and

research facilities to obtain economies by elimination of cost on duplication and promoting

market enlargement. The acquiring company obtains benefits in the form of economies of

resource sharing and diversification.

(D) Conglomerate combination:

It is amalgamation of two companies engaged in unrelated industries like DCM and Modi

Industries. The basic purpose of such amalgamations remains utilization of financial resources

and enlarges debt capacity through re-organizing their financial structure so as to service the

shareholders by increased leveraging and EPS, lowering average cost of capital and thereby

raising present worth of the outstanding shares. Merger enhances the overall stability of the

acquirer company and creates balance in the companys total portfolio of diverse products and

production processes.

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ACQUISITION

An Acquisition usually refers to a purchase of a smaller firm by a larger one. Acquisition, also

known as a takeoveror a buyout, is the buying of one company by another.

Acquisitions or takeovers occur between the bidding and the target company. There may be

either hostile or friendly takeovers. Acquisition in general sense is acquiring the ownership in the

property. In the context of business combinations, an acquisition is the purchase by one company

of a controlling interest in the share capital of another existing company.

Methods of Acquisition

An acquisition may be affected by:

(a)An agreement with the persons holding majority interest in the company managementlike members of the board or major shareholders commanding majority of voting power;

(b)purchase of shares in open market;(c)making takeover offer to the general body of shareholders;(d)purchase of new shares by private treaty;(e)acquisition of share capital through the following forms of considerations viz. means of

cash, issuance of loan capital, or insurance of share capital.

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TYPES OF ACQUISITION

There are different types of Acquisitions/takeover:-

1.Friendly takeovers

2. Hostile takeovers

3. Reverse takeovers

1. Friendly takeovers

Before a bidder makes an offer for another company, it usually first informs that company's

board of directors. If the board feels that accepting the offer serves shareholders better than

rejecting it, it recommends the offer be accepted by the shareholders.

In a private company, because the shareholders and the board are usually the same people or

closely connected with one another, private acquisitions are usually friendly. If the shareholders

agree to sell the company, then the board is usually of the same mind or sufficiently under the

orders of the shareholders to cooperate with the bidder.
http://en.wikipedia.org/wiki/Takeover#Reverse_takeovershttp://en.wikipedia.org/wiki/Tender_offerhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Tender_offerhttp://en.wikipedia.org/wiki/Takeover#Reverse_takeovers

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2. Hostile takeovers

A hostile takeover allows a suitor to bypass a target company's management unwilling to agree

to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects

the offer, but the bidder continues to pursue it, or the bidder makes the offer without informing

the target company's board beforehand.

A hostile takeover can be conducted in several ways. A tender offer can be made where the

acquiring company makes a public offer at a fixed price above the current market price. Tender

offers in the USA are regulated with the Williams Act.

An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough

shareholders, usually a simple majority, to replace the management with a new one which will

approve the takeover.

Another method involves quietly purchasing enough stock on the open market, known as a

creeping tender offer, to effect a change in management. In all of these ways, management resists

the acquisition but it is carried out anyway.

3. Reverse takeovers

A reverse takeover is a type of takeover where a private company acquires a public company.

This is usually done at the instigation of the larger, private company, the purpose being for the
http://en.wikipedia.org/wiki/Tender_offerhttp://en.wikipedia.org/wiki/Williams_Acthttp://en.wikipedia.org/wiki/Proxy_fighthttp://en.wikipedia.org/wiki/Simple_majorityhttp://en.wikipedia.org/wiki/Reverse_takeoverhttp://en.wikipedia.org/wiki/Reverse_takeoverhttp://en.wikipedia.org/wiki/Simple_majorityhttp://en.wikipedia.org/wiki/Proxy_fighthttp://en.wikipedia.org/wiki/Williams_Acthttp://en.wikipedia.org/wiki/Tender_offer

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private company to effectively float itself while avoiding some of the expense and time involved

in a conventional IPO. However, under AIM rules, a reverse take-over is an acquisition or

acquisitions in a twelve month period which for an AIM company would:

exceed 100% in any of the class tests; or result in a fundamental change in its business, board or voting control; or

in the case of an investing company, depart substantially from the investing strategy stated in its

admission document or, where no admission document was produced on admission, depart

substantially from the investing strategy stated in its pre-admission announcement or, depart

substantially from the investing strategy
http://en.wikipedia.org/wiki/Float_%28finance%29http://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Float_%28finance%29

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PURPOSE OF MERGERS AND ACQUISITIONS

The purpose for an offeror company for acquiring another company shall be reflected in the

corporate objectives. It has to decide the specific objectives to be achieved through acquisition.

The basic purpose of merger or business combination is to achieve faster growth of the corporate

business. Faster growth may be had through product improvement and competitive position.

Other possible purposes for acquisition are short listed below: -

(1) Procurement of supplies:

1. To safeguard the source of supplies of raw materials or intermediary product;

2. To obtain economies of purchase in the form of discount, savings in transportation costs,

overhead costs in buying department, etc.;

3. To share the benefits of suppliers economies by standardizing the materials.

(2) Revamping production facilities:

1. To achieve economies of scale by amalgamating production facilities through more intensive

utilization of plant and resources;

2. To standardize product specifications, improvement of quality of product, expanding

3. Market and aiming at consumers satisfaction through strengthening after sale Services;

4. To obtain improved production technology and know-how from the offered company

5. To reduce cost, improve quality and produce competitive products to retain and Improve

market share.

(3) Market expansion and strategy:

1. To eliminate competition and protect existing market;

2. To obtain a new market outlets in possession of the offeree;

3. To obtain new product for diversification or substitution of existing products and to enhance

the product range;

4. Strengthening retain outlets and sale the goods to rationalize distribution;5. To reduce advertising cost and improve public image of the offeree company;

6. Strategic control of patents and copyrights.

(4) Financial strength:

1. To improve liquidity and have direct access to cash resource;

2. To dispose of surplus and outdated assets for cash out of combined enterprise;

3. To enhance gearing capacity, borrow on better strength and the greater assets backing;

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4. To avail tax benefits;

5. To improve EPS (Earning per Share).

(5) General gains:

1. To improve its own image and attract superior managerial talents to manage its affairs;

2. To offer better satisfaction to consumers or users of the product.

(6) Own developmental plans:

The purpose of acquisition is backed by the offeror companys own developmental plans. A

company thinks in terms of acquiring the other company only when it has arrived at its own

development plan to expand its operation having examined its own internal strength where it

might not have any problem of taxation, accounting, valuation, etc. But might feel resource

constraint with limitations of funds and lack of skill managerial personnel. It has to aim at

suitable combination where it could have opportunities to supplement its funds by issuance of

securities; secure additional financial facilities eliminate competition and strengthen its market

position.

(7) Strategic purpose:

The Acquirer Company view the merger to achieve strategic objectives through alternative type

of combinations which may be horizontal, vertical, product expansion, market extensional or

other specified unrelated objectives depending upon the corporate strategies. Thus, various types

of combinations distinct with each other in nature are adopted to pursue this objective like

vertical or horizontal combination.

(8) Corporate friendliness:

Although it is rare but it is true that business houses exhibit degrees of cooperative spirit despite

competitiveness in providing rescues to each other from hostile takeovers and cultivate situations

of collaborations sharing goodwill of each other to achieve performance heights through business

combinations. The corporate aims at circular combinations by pursuing this objective.

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BENEFITS OF MERGERS AND ACQUISITIONS

1. GROWTH or DIVERSIFICATION: - Companies that desire rapid growth in size or market

share or diversification in the range of their products may find that a merger can be used to fulfill

the objective instead of going through the tome consuming process of internal growth or

diversification. The firm may achieve the same objective in a short period of time by merging

with an existing firm. In addition such a strategy is often less costly than the alternative of

developing the necessary production capability and capacity. If a firm that wants to expand

operations in existing or new product area can find a suitable going concern. It may avoid many

of risks associated with a design; manufacture the sale of addition or new products. Moreover

when a firm expands or extends its product line by acquiring another firm, it also removes a

potential competitor.

2. SYNERGISM: - The nature of synergism is very simple. Synergism exists whenever the

value of the combination is greater than the sum of the values of its parts. In other words,

synergism is 2+2=5. But identifying synergy on evaluating it may be difficult, infact

sometimes its implementations may be very subtle. As broadly defined to include any

incremental value resulting from business combination, synergism is the basic economic

justification of merger. The incremental value may derive from increase in either operational orfinancial efficiency.

Operating Synergism: - Operating synergism may result from economies of scale, some degree

of monopoly power or increased managerial efficiency. The value may be achieved by increasing

the sales volume in relation to assts employed increasing profit margins or decreasing operating

risks. Although operating synergy usually is the result of either vertical/horizontal integration

some synergistic also may result from conglomerate growth. In addition, sometimes a firm may

acquire another to obtain patents, copyrights, technical proficiency, marketing skills, specific

fixes assets, customer relationship or managerial personnel. Operating synergism occurs when

these assets, which are intangible, may be combined with the existing assets and organization of

the acquiring firm to produce an incremental value. Although that value may be difficult to

appraise it may be the primary motive behind the acquisition.

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Financial synergism-Among these are incremental values resulting from complementary

internal funds flows more efficient use of financial leverage, increase external financial

capability and income tax advantages.

a) Complementary internal funds flows

Seasonal or cyclical fluctuations in funds flows sometimes may be reduced or eliminated by

merger. If so, financial synergism results in reduction of working capital requirements of the

combination compared to those of the firms standing alone.

b) More efficient use of Financial Leverage

Financial synergy may result from more efficient use of financial leverage. The acquisition firm

may have little debt and wish to use the high debt of the acquired firm to lever earning of the

combination or the acquiring firm may borrow to finance and acquisition for cash of a low debt

firm thus providing additional leverage to the combination. The financial leverage advantage

must be weighed against the increased financial risk.

c) Increased External Financial Capabilities

Many mergers, particular those of relatively small firms into large ones, occur when the acquired

firm simply cannot finance its operation. Typical of this is the situations are the small growing

firm with expending financial requirements. The firm has exhausted its bank credit and has

virtually no access to long term debt or equity markets. Sometimes the small firm has

encountered operating difficulty, and the bank has served notice that its loan will not be

renewed? In this type of situation a large firms with sufficient cash and credit to finance the

requirements of smaller one probably can obtain a good buy bee. Making a merger proposal to

the small firm. The only alternative the small firm may have is to try to interest 2 or more large

firms in proposing merger to introduce, competition into those bidding for acquisition. The

smaller firms situations might not be so bleak. It may not be threatened by non renewable ofmaturing loan. But its management may recognize that continued growth to capitalize on its

market will require financing be on its means. Although its bargaining position will be better, the

financial synergy of acquiring firms strong financial capability may provide the impetus for the

merger. Sometimes the acquired firm possesses the financing capability. The acquisition of a

cash rich firm whose operations have matured may provide additional financing to facilitate

growth of the acquiring firm. In some cases, the acquiring may be able to recover all or parts of

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the cost of acquiring the cash rich firm when the merger is consummated and the cash then

belongs to it.

d) The Income Tax Advantages

In some cases, income tax consideration may provide the financial synergy motivating a merger,

e.g. assume that a firm A has earnings before taxes of about rupees ten crores per year and firm

B now break even, has a loss carry forward of rupees twenty crores accumulated from profitable

operations of previous years. The merger of A and B will allow the surviving corporation to

utility the loss carries forward, thereby eliminating income taxes in future periods.

Counter Synergism-Certain factors may oppose the synergistic effect contemplating from a

merger. Often another layer of overhead cost and bureaucracy is added. Do the advantages

outweigh disadvantages? Sometimes the acquiring firm agrees to long term employments

contracts with managers of the acquiring firm. Such often are beneficial but they may be the

opposite. Personality or policy conflicts may develop that either hamstring operations or acquire

buying out such contracts to remove personal position of authority. Particularly in conglomerate

merger, management of acquiring firm simply may not have sufficient knowledge of the business

to control the acquired firm adequately. Attempts to maintain control may induce resentment by

personnel of acquired firm. The resulting reduction of the efficiency may eliminate expected

operating synergy or even reduce the post merger profitability of the acquired firm. The list of

possible counter synergism factors could goon endlessly; the point is that the mergers do not

always produce that expected results. Negative factors and the risks related to them also must be

considered in appraising a prospective merger

Other motives For Merger

Merger may be motivated by two other factors that should not be classified under synergism.

These are the opportunities for acquiring firm to obtain assets at bargain price and the desire ofshareholders of the acquired firm to increase the liquidity of their holdings.

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1. Purchase of Assets at Bargain Prices

Mergers may be explained as an opportunity to acquire assets, particularly land mineral rights,

plant and equipment, at lower cost than would be incurred if they were purchased or constructed

at the current market prices. If the market price of many socks have been considerably below the

replacement cost of the assets they represent, expanding firm considering construction plants,

developing mines or buying equipments often have found that the desired assets could be

obtained where by cheaper by acquiring a firm that already owned and operated that asset. Risk

could be reduced because the assets were already in place and an organization of people knew

how to operate them and market their products. Many of the mergers can be financed by cash

tender offers to the acquired firms shareholders at price substantially above the current market.

Even so, the assets can be acquired for less than their current casts of construction. The basic

factor underlying this apparently is that inflation in construction costs not fully rejected in stockprices because of high interest rates and limited optimism by stock investors regarding future

economic conditions.

2. Increased Managerial Skills or Technology

Occasionally a firm with good potential finds it unable to develop fully because of deficiencies

in certain areas of management or an absence of needed product or production technology. If the

firm cannot hire the management or the technology it needs, it might combine with a compatible

firm that has needed managerial, personnel or technical expertise. Of course, any merger,

regardless of specific motive for it, should contribute to the maximization of owners wealth.

3. Acquiring new technology To stay competitive, companies need to stay on top of

technological developments and their business applications. By buying a smaller company with

unique technologies, a large company can maintain or develop a competitive edge.

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ECONOMIC THEORY

The Fama and French Three-Factor Model

Fama and French (1993) identify a model with three common risk factors in the stock returns -

an overall market factor, factors related to firm size (SMB) and those related to book-to-market

equity (HML). They use a time-series regression approach of Black, Jensen, and Scholes (1972),

whose result says that size and book-to-market factors are proxies for explaining the differences

in average returns across stocks. Used alone, these factors do not explain the large difference

between the average returns on stocks and risk-free rates. This makes it imperative for the market

factor to be included in the regression to explain the above, which then makes the Fama and

Frenchs three-factor model:

E(Ri)= Rf + [E(Rm)-Rf]bi + siE(SMB) + hiE(HML)

where E(Rm)-Rf, E(SMB) and E(HML) are the factor risk premiums and bi, si and hi are the

factor sensitivities.

Fama and French (1996) define anomalies as the patterns in average returns that are not

explained by the CAPM. These are related to firm characteristics like size, earnings/price, cash

flow/price, book-to-market equity, past sales growth, long-term past return, and short-term past

return.

Fama and French (1998) find international evidence stating that for the period 1975-1995, the

value premium which is the difference between the high BE/ME and low BE/ME stocks is

7.68% per year and the value stocks outperform growth (glamour) stocks in twelve of the

thirteen major (developed) markets. They also allow for another out-of-sample test of value

premium on sixteen emerging markets and find the same result. With respect to size effect, they

find that like US stocks returns, small stocks in emerging markets have higher average return

than big stocks.

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LIMITATIONS

1)Number of merger cases analyzed by various studies is much less and have taken onlymergers and acquisitions.

2) It is noticed that none of the studies dealt comprehensively on trend of M&As for thepost 1991 period.

3) From the survey of Indian M&As literature, it is mainly found that apart from growthand expansion, efficiency gains and market power are the two important motives for

M&As. Apart from measuring post merger profitability of the merged entity, there have

been no reported works on these issues in the Indian context.

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HYPOTHESIS TESTING

The problem of statistical hypothesis may be stated as simply as:

Is a given observation or finding compatible with some stated hypothesis or not?The word compatible, as used here, means sufficiently close to hypothesized value so that we

do not reject the stated hypothesis. For example, if some theory leads us to believe that the true

slope coefficient among some variables is unity, is the observed 2=.684 obtained from its

sample, consistent with stated hypothesis? If it is, we do not reject the hypothesis; otherwise, we

may reject it.

Null and Alternative Hypotheses

In any experiment, there are two hypotheses that attempt to explain the results. They are thealternative hypothesis and the null hypothesis.

Alternative Hypothesis ( H1 or Ha ). In experiments that entail manipulation of an independentvariable, the alternative hypothesis states that the results of the experiment are due to the effectof the independent variable. In the coin tossing example above, 1 H would state that the biasedcoin had been selected, and that p(Head) = 0.15.

Null Hypothesis ( Ho ). The null hypothesis is the complement of the alternative hypothesis. Inother words, if 1 H is not true, then 0 H must be true, and vice versa. In the foregoing coin

tossing situation, H0 asserts that the fair coin was selected, and that p(Head) = 0.50.Thus, the decision rule to minimize the overall p(error) can be restated as follows:

if p(X | 0 H ) > p(X | 1 H ) then do not reject H0if p(X | 0 H ) < p(X | 1 H ) then reject H0

THE CONFIDENCE-INTERVAL APPROACH

Two tail or two sided

Suppose, for a function,

H0: 2 = 0.3

H1: 2 0.3

that is, the true 2 is 0.3 under the null hypothesis but it is less than or greater than 0.3 under the

alternative hypothesis. The null hypothesis is a simple hypothesis, whereas the alternative

hypothesis is composite; actually it is what is known as a two-sided hypothesis.

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Confidence interval is given by:

t =

i.e.

Here, se is the estimated standard error. Using t value at required significance level from t

table and then using value of we develop a confidence interval for 2.

The confidence interval provides a set of plausible null hypotheses. Therefore, if2 underH0

falls within the 100(1 ) % confidence interval, we do not reject the null hypothesis; if it lies

outside the interval, we may reject it.

In statistics, when we reject the null hypothesis, we say that our finding is statistically

significant. On the other hand, when we do not reject the null hypothesis, we say that our finding

is not statistically significant.

In our analysis we have taken the following hypothesis:

1. Testing the significance difference between Pre and Post merger Actual Return onEquity

H0 (Null Hypothesis) There is no significance difference between the pre and postmerger Mean Return on Equity.(taking 100 days before merger, 100 days after merger)

H1 (Alternative Hypothesis) There is significance difference between the pre and postmerger mean Return on Equity. (taking 100 days before merger, 100 days after merger)

This hypothesis is done to check whether there is any merger impact or not. If nullhypothesis is accepted, that means there is no change in return to stock even after merger.

2. Testing the significance difference between Post mergers Actual and Predictivereturn

H0 (Null hypothesis) There is no significance difference between the Actual andpredictive return in 2nd period. (1 year before merger, 1 year after merger)

H1 (Alternative hypothesis) There is significance difference between the Actual andpredictive return in 2nd period. (1 year before merger, 1 year after merger) i.e. The

Actual return is greater than and predictive return for 2nd period.

This hypothesis will show whether the impact of merger (if any), positive or negative. Ifnull hypothesis is rejected, that means there is positive impact of merger on bank.

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METHODOLOGY

a) Data Collection

For the purpose of evaluation, investigation data is collected from Merger and Acquisitions

(M&As) of the Indian banking industry. The financial and accounting data of banks is collected

from companies Annual Report to examine the impact of M&As on the performance of sample

banks. Financial data has been collected from Bombay Stock Exchange (BSE), National Stock

Exchange (NSE), Securities and Exchange Board of India (SEBI), Money control for the study

and other websites.

Variables chosen to represent merger impact of a company are: (a) Daily Adjusted close price of

company (1 year before merger, and 1 year after merger), (b) Daily Adjusted close Indices of

Market (1 year before merger, and 1 year after merger) corresponding to stock, (c) Book value

(per share holder) of the company, (d) Deposits, (e) Total Deposits and (f) EPS.

Generally, indices are used to calculate how much is market explaining the movement in stock

and how much riskier is the stock and thus are considered as a strong financial factor to explain a

firms performance in accordance to economy.

b) Building and Classification of database

To test the research prediction, methodology of comparing the pre and post performances of

banks after Merger and Acquisitions (M&As) has been adopted. We have taken 5 cases of

Mergerand Acquisitions (M&As) as sample, in order to evaluate the impact of M&As. The pre

merger (1year prior) and post merger (after 1 year) of the financial ratios are being compared.

The observation of each case in the sample is considered as an independent variable. Before

merger two different banks carried out operating business activities in the market and after the

merger the bidder bank carrying business of both the banks.

By using financial and accounting data, we have investigated the impact of M&As on the

performance of the sampled companies. For carrying out this analysis, secondary data on

financial variables and statements of selected Indian companies have been collected from capital

market online data bank.

Some companies experienced more than one M&A in the reference period and many M&As

took place in the adjacent periods. So, in many cases pre M&A year of latter event coincided

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with post M&A year of former even. So, such cases were included in the study as by employing

regression analysis, impact of merger would not be visible clearly as pre M&A observation of

second event would neutralize the impact of change in performance measures (post M&A

observation) of the first event.

Selection of Sample and Period:

The banks selected for studying the impact of M&As on various financial variables represents

the Indian economy. Only limited banks were selected for in depth financial analysis taking into

account the constraints of uniformity of data for the said time period. This study concentrated

only on few banks as relevant data is not available for targeted banks. For this investigation, we

have selected 5 listed banks on NSE. Further, utmost care has been given to select companies

which fairly represent broad industrial groupings as has been followed in this study.

Analysis:

Two techniques were used to study the data.

1. Microsoft Excel: The tool was used to collect, store and sort out the data of the banks tobe used for further research process. Its tools of Conditional formatting and Format cells

helped most in sorting out data.

2. SPSS: Tool for regression and compare means has been applied to investigate the trendand impact of M&As. Classical Linear Regression Model and other statistical tools were

also used for analysis as part of our study.

In our Research we have used the famous concept ofEvent Study to find out the actual effect of

merger and Acquisition. Event study methodology is based on Efficient Market Hypothesis.

According to this, a market is efficient if prices fully reflect all available information. One

important assumption is that capital markets are sufficiently efficient to react on events (new

information) regarding expected future profits of affected corporations. Efficiency is classified as

weak form when information set includes past prices, semi strong form when information

set includes all publicly available information and strong form when information set includes

all publicly and privately available information. Event studies are mostly rested upon the analysis

of the so-called normal and abnormal returns which are estimated on the basis of asset

pricing model.

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PROCESS:

Step 1: Data of 5 banks, collected and sorted in above steps, was then opened in SPSS for further

interpretations. Variables were created in SPSS file, and also there type, width,decimals etc.

were defined before pasting data in Data set.

Step 2: Variables were then transformed into their respective LAGs and LOGs of LAGs. For

this, compute variable option was used. Also then Return on stock and indices was calculated by

subtracting Log and lag of the respective variables.

Step 3: Two dummy variables were then created by recoding into different variable to separate

data for two periods. It has value equal to 1, when data point is taken for pre M&A period and 0,

when data point is taken for post M&A period. And also another dummy is implied which has

value equal to 0, when data point is taken for pre M&A period and 1, when data point is taken

for post M&A period.

Step 4: Returns on stock, CNX bank nifty and all other variable were then multiplied with both

dummies, one by one, to separated variables for both the period.

Step 5: Once data was sorted into two groups with returns, using dummy, regression was run for

both periods, one by one and results were saved. Adjusted R2 and Beta coefficients were

recorded for hypothesis testing for next step.

Step 6: First, Testing the significance difference between Pre and Post merger Actual Mean

Return on Equity to check whether there is a merger impact or not, using Independent Sample

T-test in Compare means tool of SPSS.

Step 7: Coefficients of 1st period were then used to calculate return on stock for post merger

period. This gave us a Predicted Return for 2nd

period.

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Step 8: Another hypothesis testing was then done in MS-EXCEL to test the significance

difference between Post mergers Actual and Predictive return. This showed us whether change

in return (if any) was due to market return or banks performance.

Step 9: All the outcomes were formulated in tables and graphs were drawn for some instances

for further references and clarifications.

Step 10: Output was interpreted and conclusions were drawn on the basis of collected results

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CONCLUSION

The purpose of this study was to examine the impact of mergers and acquisition on the

performance of Indian Banking sector. The results and their interpretation are as follows:

Stock Variance Average return Of Both

PeriodsBank Of Baroda Unequal Equal

ICICI Bank Equal Equal

IDBI Bank Equal Equal

Oriental Bank Of Commerce Unequal Equal

Indian Overseas Bank Equal Equal

From the above we can easily conclude that when we compared the average return on the stock100 days before merger with the average return on the stock 100 days after the return.

In our analysis we hypothesized that means of both the periods are same and Alternate

hypothesis is both the means are not same. Shockingly, when we conducted the test we found out

that average return of both the periods for all the companies is same and this can be verified from

the graphs of all the banks given below:

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At first instance it may be said that merger has no effect on the firm but this may be partially true

because there might be chances that the companies may have performed well after merger or

acquisition but due to bad market conditions its performance may not have reflected in its

Market price as a result of which average return for the short term period would not have

changed

On the other hand, the situation may be opposite as investor may consider merger good for the

company and increased its price by buying the stock excessively, even though impact of merger

on the company is bad but still it will get the chance to hide under the shade of increased market

return.

In order to know whether average return for the firm increased, decreased or remain constant for

the firm we designed the model inspired by the Famas Three factor model.

Using the above model we ran the regression on above mentioned stocks with CNX bank Nifty

and obtained output.

Through this model we tried to explain the effect of merger by taking account of all the factors

which could have explained the variation in return and then predicted the return for the second

period and subtracted it from its actual return using t test.

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1)Bank Of Baroda merger with South Gujarat Local Area Bank Ltd.According to the RBI, South Gujarat Local Area Bank had suffered net losses in consecutive

years and witnessed a significant decline in its capital and reserves. To tackle this, RBI first

passed a moratorium under Section 45 of the Banking Regulation Act 1949 and then, after

extending the moratorium for the maximum permissible limit of six months, decided that all

seven branches of SGLAB function as branches of Bank of Baroda. The final decision about the

merger was of the Government of India in consultation with the RBI dated 25th

June 2004. Bank

of Baroda was against the merger, and protested against the forced deal.

Following Results are obtained from regression when Bank Of Baroda is regressed with Bank

nifty, PE Ratio, MPS/EPS and Size taking sample for 1yr:

Before Merger After Merger

Variable Beta Coeff. Significance Beta Coeff. Significance

Constant(B0) .007 Insignificant -.003 Insignificant

PE Ratio .000 Insignificant .000 Insignificant

MPS/EPS .004 Insignificant .005 Insignificant

Size -.201 Insignificant .005 Insignificant

Bank Nifty 1.449 Significant 1.480 Significant

When we regressed Bank Of Baroda with the Bank Nifty, PE ratio, MPS/EPS and Size, we

obtained the above mention results from which we can draw conclusion that as the merger came

into effect Beta coefficient of Constant reduced but the coefficients of all other variables i.e. PE

ratio, MPS/EPS, Size and Bank Nifty increased over the same period.

Also looking at the above table we can say that Constant, PE ratio, MPS/EPS and Size are

insignificant but Coefficient of Bank Nifty is significant. Even though some variables are

insignificant but this does not affect the viability of the model as overall model is significant.

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With reference to the above figure we can easily say that R2 of the company reduced after the

merger, this implies the factors we took in our model now explain less variation in the stock.

It is to be noted that reduced R2 will not make the model meaningless.

NOTE: All the above mentioned assumptions of CRLM are validate with this model and thus it

is good model for conducting research.

After conducting the above regression we calculated the Predicted Return for second period

and compared it with Actual Returnof the second period.

In this comparison we hypothesized that Actual and Predicted return are sameand Alternate

hypothesis is Actual return is greater than Predictedreturn using One-tail test.

We did this process for both 100 days and 1yr sample to check whether the trend continues in the

long run or it just have a short term effect.

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Above Graph was obtained when found the values of Predicted and actual returns taking sample

of 100 days. From the above graph it can be easily concluded that both predicted return and

actual return are moving together but actual return seems to have an upper hand.


of 1yr. From the above graph it can be easily concluded that both predicted return and actual

return are moving together but actual return was better than predicted return and this is verified

as when we found the compare means of both the returns and hypothesized that both means are

same, but our hypothesis got rejected as the p-value of the test is very low so we can easily say

that merger had a positive impact on BankOf Baroda.

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1) ICICI Bank with Bank of RajasthanICICI Bank Ltd, Indias largest Private sector bank, said it agreed to acquire smaller rival Bank

of Rajasthan Ltd to strengthen its presence in northern and western India, on 13th Aug 2010. The

deal, which will give ICICI a sizeable presence in the northwestern desert of Rajasthan, values

the small bank at 2.9 times its book value, compared with an Indian Banking sector average of

1.84. The negatives for ICICI Bank are the potential risks arising from BoRs non-performing

loans and that BoR is trading at expensive valuations.

Following Results are obtained from regression when Bank Of Baroda is regressed with Bank

nifty, PE Ratio, MPS/EPS and Size taking sample for 1yr:

Before Merger After MergerPartially

Variable

Beta Coeff. Significance Beta Coeff. Significance

Constant(B0) -.050 Insignificant -.050 Insignificant

PE Ratio .000 Insignificant 1.196 Insignificant


Size 1.063 Insignificant .006 Insignificant

Bank Nifty 1.196 Significant 1.063 Significant

Similarly, When we regressed ICICI Bank with the Bank Nifty, PE ratio, MPS/EPS and Size to

find out the actual effect of merger, we obtained the above mention results from which we can

draw a conclusion that as the merger came into effect Beta coefficient of Constant remained the

same but the coefficients MPS/EPS, Size and Bank Nifty reduced and Coefficient of PE ratio

increased.


insignificant but Coefficient of Bank Nifty is significant. Even though some variables are

insignificant but this does not affect the viability of the model as overall model is significant.

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With reference to the above figure we can easily say that R2 of the company increased after the

merger, this implies the factors we took in our model now explain more variation in the stock.



After completing the regression process we repeated the same process for calculating Predicted

Mean as we did earlier and compared it with actual return for both 100 days and 1yr. Taking the

same hypothesis and null hypothesis we computed t-value at one tail and obtained results as

follows:

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actual return are moving together but Predicted return outclassed the actual return.



return are moving together but Predicted return outclassed the actual return and this is verified as

when we found the compare means of both the returns and hypothesized that both means aresame, but our hypothesis got rejected as the p-value of the test is very high we can easily say that

merger had a negative impact on ICICI Bank.

2) Oriental Bank of Commerce with Global Trust Bank Ltd.For Oriental Bank of Commerce there was an apparent synergy post merger as the weakness of

Global Trust Bank had been bad assets and the strength of OBC lay in recovery. In addition,

GTB being a south-based bank would give OBC the much-needed edge in the region apart from

tax relief because of the merger. GTB had no choice as the merger was forced on it, dated 14th

August 2004, by an RBI ruling, following its bankruptcy. OBC gained from the 104 branches

and 276 ATMs of GTB, a workforce of 1400 employees and one million customers. Both banks

also had a common IT platform.

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Constant(B0) -.005 Insignificant .003 Insignificant

PE Ratio .000 Insignificant -.001 Insignificant

MPS/EPS 0.000014 Insignificant .005 Insignificant

Size .150 Insignificant -.206 Insignificant

Bank Nifty 1.399 Significant .914 Significant

Again, When we regressed Oriental Bank Of Commerce as we did in previously with the Bank

Nifty, PE ratio, MPS/EPS and Size to find out the actual effect of merger, we obtained the above

mention results from which we can draw a conclusion that as the merger came into effect Beta

coefficient of MPS/EPS increased but all other coefficients decreased.


insignificant but Coefficient of Bank Nifty is significant.

Even though some variables are insignificant but this does not affect the viability of the model as

overall model is significant.

From the above figure we can easily say that R2 of the company reduced after the merger, this

implies the factors we took in our model now explain less variation in the stock. It is to be noted

that reduced R2 will not make our model meaningless.




Mean as we did earlier and compared it with actual return taking both 100 days and 1yr. Taking

the same hypothesis and null hypothesis we computed t-value at one tail.

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Above Graph was obtained when found the values of Predicted and actual returns taking sampleof 100 days. From the above graph it can be easily concluded that both predicted return and

actual return are moving together but actual return outclassed the predicted return.



return are moving together but Actual return outclassed the Predicted return and this is verified

as when we found the compare means of both the returns. We hypothesized that both means are

same, but our hypothesis got rejected as the p-value of the test is very low so we can easily

conclude that merger had a positive impact on Oriental Bank of Commerce.

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3)IDBI Bank with United Western Bank LtdFor IDBI, growing at 25 per cent over the past two years, addition of branches would help

sustain the momentum. The merger, therefore, gave IDBI access to a ready physical

infrastructure, enabling it to mobilize low-cost funds. Second, the merger with UWB, dated 3rd

October 2006, expected to help IDBI diversify its credit profile. Dominant in industrial

financing, IDBI should get exposure to agriculture credit through UWB



Constant(B0) -.178 Significant -.163 Significant

PE Ratio .020 Significant .011 Significant

MPS/EPS -.105 Significant .032 Insignificant

Size 4.062 Significant 3.619 Significant

Bank Nifty 1.436 Significant .962 Significant

In this regression, we regressed the 15th

Lag of IDBI with the 15th

lag of Bank Nifty, PE ratio,

MPS/EPS and Size to find out the actual effect of merger.

In this regression we used 15th lag in order to improve the model. As a result of which we

obtained the above mention results from which we can draw a conclusion that as the merger

came into effect, Beta coefficients of MPS/EPS and Constant increased but coefficients of all

the other variables decreased namely PE ratio, size and 15th

lag of Bank Nifty.

Also looking at the above table we can say that Constant, PE ratio and Size are insignificant,

Coefficient of Bank Nifty is significant but coefficient of MPS/EPS is insignificant before

merger but became significant after merger.



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From the above figure we can easily say that R2

of the company reduced after the merger, thisimplies the factors we took in our model now explain less variation in the stock.

It is to be noted that reduced R2 will not make our model meaningless.




Mean as we did earlier and compared it with actual return for both 100 days and 1yr sample.

Taking the same hypothesis and null hypothesis we computed p-value at one tail.

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actual return are moving together. It seems that both returns might be equal but we cannot say

that before testing the data.



return are moving together but Predicted return and the actual return are same and this is verified

as when we found the compare means of both the returns and hypothesized that both means are

same as our hypothesis got accepted as the p-value of the test is lies within acceptance region so

we can easily say that merger had a no impact on IDBI Bank.

4)INDIAN OVERSEAS BANK with Indian overseas bank Ltd.Indian Overseas Bank(IOB) was a private bank based in Chennai, India. In 2007 it merged

with Indian Overseas Bank, which took over all the bank's employees, assets, and deposits. IOB

earlier held 30% of the BOB stocks. The board of state-owned Indian Overseas Bank then

approved a proposal to buy out the remaining 70 per cent of unlisted Indian Overseas Bank for

Rs 170 crore. The acquisition helped IOB, Indias ninth-largest bank with more than 1,500

branches, to add another 91 branches.

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Constant(B0) -.032 Insignificant .454 Insignificant

PE Ratio .000 Insignificant .002 Insignificant


Size 1.163 Insignificant -17.557 Insignificant

Bank Nifty .993 Significant .916 Significant

When we regressed INDIAN OVERSEAS BANK with the Bank Nifty, PE ratio, MPS/EPS and

Size, we obtained the above mention results from which we can draw conclusion that as the

merger came into effect Beta coefficient of Constant reduced but the coefficients of all other

variables i.e. PE ratio, MPS/EPS, Size and Bank Nifty increased over the same period.


insignificant but Coefficient of Bank Nifty is significant.



From the above figure we can easily say that R2

of the company reduced after the merger, this

implies the factors we took in our model now explain less variation in the stock.

It is to be noted that reduced R2 will not make our model meaningless.




Mean as we did earlier and compared it with actual return for both 100 days and 1yr. Taking the

same hypothesis and null hypothesis we computed t-value at one tail and obtained results as

follows:

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of 100 days. From the above graph it can be easily concluded that both predicted return andactual return are moving together but Predicted return outclassed the actual return.



return are moving together but Predicted return outclassed the actual return and this is verified as

when we found the compare means of both the returns and hypothesized that both means are

same, but our hypothesis got rejected as the p-value of the test is very high we can easily say that

merger had a negative impact on Indian Overseas Bank.

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BIBLIOGRAPHY

http://www.mergersandacquisitions.in

http://www.mergersindia.com/mergeronline/ http://rspublication.com/ijrm/march%2012/3.pdf http://www.moneycontrol.com http://akpinsight.webs.com/Azeem%20Ahmad%20Khan.pdf www.mergerdigest.com www.nseindia.com www.In.finance.yahoo.com Gujarati,_D._(2004)_Basic_Econometrics www.sify.com www.Bankofbaroda.com www.punjabnationalbank.com www.icici.com www.idbi.com www.iob.com www.obc.com
http://www.mergersandacquisitions.in/http://www.mergersandacquisitions.in/http://www.mergersindia.com/mergeronline/http://www.mergersindia.com/mergeronline/http://rspublication.com/ijrm/march%2012/3.pdfhttp://rspublication.com/ijrm/march%2012/3.pdfhttp://www.moneycontrol.com/http://www.moneycontrol.com/http://akpinsight.webs.com/Azeem%20Ahmad%20Khan.pdfhttp://akpinsight.webs.com/Azeem%20Ahmad%20Khan.pdfhttp://www.mergerdigest.com/http://www.mergerdigest.com/http://www.nseindia.com/http://www.nseindia.com/http://www.in.finance.yahoo.com/http://www.in.finance.yahoo.com/http://www.sify.com/http://www.sify.com/http://www.bankofbaroda.com/http://www.bankofbaroda.com/http://www.punjabnationalbank.com/http://www.punjabnationalbank.com/http://www.icici.com/http://www.icici.com/http://www.idbi.com/http://www.idbi.com/http://www.iob.com/http://www.iob.com/http://www.obc.com/http://www.obc.com/http://www.obc.com/http://www.iob.com/http://www.idbi.com/http://www.icici.com/http://www.punjabnationalbank.com/http://www.bankofbaroda.com/http://www.sify.com/http://www.in.finance.yahoo.com/http://www.nseindia.com/http://www.mergerdigest.com/http://akpinsight.webs.com/Azeem%20Ahmad%20Khan.pdfhttp://www.moneycontrol.com/http://rspublication.com/ijrm/march%2012/3.pdfhttp://www.mergersindia.com/mergeronline/http://www.mergersandacquisitions.in/

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B.B.E. (Semester-V)

Evaluation of Project Report

Paper-502: Computational Techniques

EVALUATION SHEET

Name of Candidate: __________________________ Roll No: ___________

S. No Basis of Examining Candidate M. Marks Award

1 Analysis of topicObjectives and Hypothesis 102 Scope, coverage and Review of Literature 10

3 Quality of Research Methodology Applied 10

4Interpretation of Statistical Results-content anddepth

10

5 Ability to highlight limitations and suggestionsfor further research

10

Total 50Note: 40% of these marks shall be assigned to each of the participating student ofthis Group Project, as per Para 1(b) of Project Report Evaluation, given above.

Remarks:____________________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________

(External Examiner) (Internal Examiner)Code: ________ Code:_______

(Note: This evaluation Performa should be pasted inside each Project Report for

use by Internal and external examiner.)

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Evaluation Sheet to be used for Individual student of Group project

University

Roll No.Name of Candidate

Marks

from

Project-

40%

Questions on any

part of Project-30%

Questions on specific

Module-30%

Marks

Marks:50

1 2 3 4 5 6 Total

(External Examiner) (Internal Examiner)Code: ________ Code: _______

ssrn-id2178051

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