Abstract:
Mergers and acquisitions (M&A) have lately increased in the Indian banking sector with the
desire to improve efficiency. It is important to investigate whether the banks are able to gain
expected synergies. This study examines the effects of M&A in the banking sector by
analyzing M&A transactions between 2014 and 2022. The current paper is built on
secondary financial data, whereas outcomes were assessed on three major parameters, i.e.
market performance, financial performance, and overall efficiency improvement. The study
used different methodologies such as event study, ratio analysis, tabulation, and Wilcoxon
rank text to check over different parameters. The findings reveal a significant improvement in
market performance and financial performance. No statistically significant improvements
were found in profitability, liquidity, and operational efficiency. We conclude that synergy
gain cannot be achieved by M&A only. Overall the study gives insight into the value creation
through M&A in emerging economies' banking industry and emphasizes the importance of
effective integration strategies. The study has implications for the central bank, banks, and
policymakers in emerging economies to decide on M&A activities and the development of a
robust banking sector.
