Assessment of financial performance post mergers and acquisitions: evidence from the Indian banking sector

Arshi and Vaishali

International Journal of Business Forecasting and Marketing Intelligence, 2024, vol. 9, issue 4, 408-422

Abstract: Banks frequently pursue consolidating banks through mergers and acquisitions as they are remarkable for strategic alliances and achieving competencies for banks seeking domestic and international exposure. By using a wide range of financial criteria, this study aims to ascertain whether M&A affects the financial performance of groups of recently consolidated Indian banks. The research period is from 2016 to 2022, and public-sector bank merger deals are considered. To benefit from economies of scale and synergies and to maintain market leadership, large mergers are closely monitored by all stakeholders, including customers, employees, and investors. These mergers are carried out specifically to strengthen the economy by boosting liquidity, dropping the issue of non-performing assets, and reducing risk. An attempt is made by using exploratory research design and various statistical tools, such as paired t-tests, to investigate the impact of big public-sector bank mergers and acquisitions. Conclusively, there has been no such change in the financial results of a few Indian banks following mergers and acquisitions.

Keywords: financial performance; mergers and acquisitions; M%A; consolidation; return on assets; ROA; return on equity; ROE. (search for similar items in EconPapers)
Date: 2024
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