THE IMPACT OF MERGERS AND ACQUISITIONS ON CUSTOMER SATISFACTION AND SERVICE QUALITY IN THE INDIAN BANKING SECTOR

Abstract

Mergers and Acquisitions (M&As) have increasingly become vital tools in the Indian banking sector, especially among public sector banks aiming for financial consolidation and operational efficiency. These strategic moves were initiated to address structural inefficiencies, control non-performing assets (NPAs), and strengthen capital adequacy. Although there is ample research focused on the financial and organizational outcomes of M&As, much less attention has been given to their impact on service quality and customer satisfaction. This study explores the effects of the 2019 merger of Bank of Baroda with Vijaya Bank and Dena Bank. As the first three-way merger in Indian banking history, it serves as a relevant case to understand customer-centric outcomes of such consolidations. Data was collected from thirty-five respondents through structured questionnaires that covered several aspects of customer experience, including technological integration, ease of service access, variety of financial products, relationship management, and the perception of institutional reputation. The findings suggest that customers have responded positively to the merger. There were notable improvements in technological efficiency, customer service delivery, accessibility, and overall institutional image. Quantitative analysis using descriptive statistics, weighted means, and ranking techniques supported the hypothesis that customer satisfaction increased after the merger. The study highlights the need for inclusive merger strategies that prioritize customer engagement, clear communication, and seamless integration of services. Policy recommendations emerging from the research suggest the importance of developing post-merger frameworks that evaluate customer outcomes as essential indicators of success. By focusing on customer perspectives, this dissertation contributes to the evolving discourse on banking reforms and institutional restructuring in India. It emphasizes that long-term success in the banking sector must account for customer experiences and satisfaction levels, not just financial metrics.