In the present era of global economy, Mergers and Acquisitions have become the most widely used business strategy of corporate restructuring and strengthening to achieve greater market share, long term profitability, entering new markets, capitalising on economies of scale etc. The present paper evaluates the effects of merger and acquisitions on the financial performance of the selected banks in India. Pre and post merger comparison is conducted on selected variables to analyse the effectiveness of mergers and acquisitions on the banks. Two cases of merger and acquisitions have been taken randomly as sample for the study, first the merger of ICICI bank and The Bank of Rajasthan, and second the merger of HDFC bank and Centurion Bank of Punjab. The results of the study indicate that there is a positive impact of mergers and acquisitions on the financial performance of the selected banks.
Mergers and acquisition, Banking, Financial Performance, Financial Ratios, Synergy
