Assessing the Impact of Mergers and Acquisitions on Financial Performance in the Indian Banking Sector

Hemanth Kumar S , Gogulnath K , Abin Rona Stephen , Rishika Pareek , Mathuraswamy P

Mergers and acquisitions, Indian banking, financial performance, profitability, asset quality, panel regression, regulatory consolidation

In the face of competition, globalization, and regulatory changes, mergers and acquisitions (M&A) have become a crucial consolidation strategy for Indian banks. Even though it is expected that these mergers will increase financial resilience and create synergies, there is still a dearth of empirical data regarding their efficacy in the Indian context. The State Bank of India merger with associate banks (2017), the consolidation of public sector banks (2019–2020), and the HDFC–HDFC Bank merger (2023) are the three major M&A transactions in Indian banking that are examined in this empirical study between 2015 and 2025. The study examines financial performance metrics such Return on Equity (ROE), Return on Assets (ROA), Earnings per Share (EPS), and Non-Performing Asset (NPA) ratios over three years prior to and following the merger using secondary data from annual reports and RBI databases. Panel regression modeling, ANOVA, and paired t-tests are among the analytical techniques employed. Findings indicate that profitability metrics (ROE and ROA) increased statistically significantly following the merger, whereas improvements in the NPA ratio were uneven. The results indicate that while M&A effectively releases profitability synergies, systemic advantages require accompanying investments in operational integration and oversight. This study provides up-to-date, empirical data from recent Indian banking consolidation events, providing investors, regulators, and bank management with practical insights on the efficacy of post-merger integration and the optimization of M&A strategies.

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"Assessing the Impact of Mergers and Acquisitions on Financial Performance in the Indian Banking Sector", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.11, Issue 1, page no.b286-b296, January-2026, Available :https://ijsdr.org/papers/IJSDR2601139.pdf

Volume 11 Issue 1, January-2026

Pages : b286-b296

Paper Reg. ID: IJSDR_306521

Published Paper Id: IJSDR2601139

Downloads: 000319

Research Area: Commerce and Management, MBA All Branch

Country: Chennai, Tamil Nadu, India

Published Paper PDF: https://ijsdr.org/papers/IJSDR2601139

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2601139

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

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