Impact on Performances Post Merger and Acquisitions in Indian Banking Sector

Abstract

The purpose of this article is to study the effect that mergers and acquisitions (M&A) have on the performance of financial institutions. The process of merging or acquiring another company is a big event that can have a dramatic effect on both the companies involved and the industry as a whole. This study intends to provide insights into the effects of mergers and acquisitions (M&A) operations on the financial performance of banks as well as their market valuations by focusing primarily on the banking industry. This research makes use of a technique known as event analysis, which is a strategy that concentrates on assessing abnormal returns close to the announcement and completion dates of M&A agreements. Calculating abnormal returns involves comparing actual stock returns to projected stock returns based on market patterns and industry performance. This comparison is used to determine abnormal returns. For the purpose of conducting data analysis and drawing conclusions, the study will make use of a wide variety of statistical approaches, such as event study methodology, regression analysis, and financial performance measures. The research will make a significant contribution to the current body of literature on mergers and acquisitions (M&A) operations in the banking sector, delivering insightful information to investors, regulators, and other stakeholders in the banking industry. This study can assist investors in making informed judgements regarding investments in banking stocks during M&A events by providing them with relevant data. In addition, regulators and policymakers have the opportunity to obtain a better knowledge of the implications that mergers and acquisitions have on the stability and competitiveness of the banking industry. In addition, the study makes a contribution to academic research by broadening the knowledge base on event analysis of mergers and acquisitions (M&A) transactions that take place within the banking industry.