MERGERS & ACQUITIONS IN INDIAN BANKING SECTOR AND THEIR IMPACT ON FINANCIAL ON PERFORMANCE & SHAREHOLDERS WEALTH OF ACQUIRING BANKS

Abstract

This dissertation is a study on the objectives of mergers and acquisitions in India, as to why organizations & firms get into this inorganic mode of expansion. However the focus has been asserted on studying the financial performance and Shareholder‟s value of the acquiring entities and comparing their performance before and after the merger. To conduct a uniform research and arrive at an accurate conclusion, the research has been made restricted to only Indian companies. Furthermore, in Indian context, Banking Sector is chosen for the study. The report examines the impact of Mergers and Acquisitions on performance of banks in India. The impact on performance of the acquiring banks involved has been analyzed on the basis of two perspectives: i) Operating Performance of acquiring banks, ii) Profitability position of the acquiring banks and iii) Parameters affecting Shareholder‟s Value. For this purpose, 3 Indian Banking Sector M&A cases has been taken into consideration. With this study, I have tried to test a hypothesis that whether Mergers & Acquisitions change or improve Financial Performance and Shareholder‟s value of the acquiring banks or not. In order to test the hypotheses and to fulfill the objectives of the study, secondary research methods have been used.