THE STUDY RELATED TO THE IMPACT OF MERGERS AND ACQUISITIONS ON THE FINANCIAL PERFORMANCE OF INDIAN COMMERCIAL BANKS

Abstract

The purpose of the study is to find out how M&A deals have affected the bottom lines of commercial banks in India. Stakeholders must comprehend the consequences of mergers and acquisitions (M&A) because the banking industry is experiencing profound change as a result of consolidation. The main goals of the study are to examine the impact of mergers and acquisitions on profitability, to improve operational efficiency and cost management, and to increase important financial ratios like return on assets (ROA) and return on equity (ROE). Rigid statistical analyses, including regression modeling, were conducted after data was acquired from many Indian commercial banks using a quantitative research approach. According to the results, strategic consolidation improves financial performance, and “mergers and acquisitions (M&A)” have a beneficial effect on profitability. The effectiveness of mergers and acquisitions (M&A) as a means of creating shareholder value was further demonstrated by the post-merger gains in ROA and ROE. The study also shows that banks' operational efficiency and cost management methods improve after an M&A. The significance of smart mergers and acquisitions (M&A) in developing a strong banking sector in India is underscored by these findings, which have important consequences for investors, bank management, and policymakers.