Impact of merger and acquisition on banks’ financial performance: An empirical analysis of selected parameters

Mergers and acquisitions (M&A) are one of the most widely used corporate strategies followed by organisations looking for enhanced value creation. The present study attempted to analyse the impact of M&A on the financial performance of selected banks in India. It focuses on the rise of earnings per share, dividend per share and firms’ value and others of selected banks of pre and post–merger and acquisition with the help of statistical techniques. For this study, three banks namely HDFC Bank, ICICI Bank and Kotak Mahindra Bank are considered. The results reveal that most of the financial parameters during post merger have shown significant improvement in all the cases and there is possibility of improvement in financial performance in later years.