INTERNATIONAL JOURNAL OF ENGINEERING MANAGEMENT AND
SOCIAL SCIENCES

Impact of mergers and acquisitions on firms long term performance A pre and post analysis of the Indian Banking sector

This study examines the impact of mergers and acquisitions (M&A) on the long-term financial performance of firms in the Indian banking sector through a comparative pre- and post-merger analysis. Mergers and acquisitions have become important strategic tools for banks to improve operational efficiency, expand market share, strengthen financial stability, and enhance competitiveness in the rapidly changing financial environment. The study analyzes the long-term performance of selected Indian banks over a six-year period, comprising three years before the merger and three years after the merger. The research evaluates key financial performance indicators, including profitability, liquidity, efficiency, solvency, and shareholder value, to determine the effectiveness of mergers and acquisitions. The study is based on secondary data collected from annual reports, financial statements, Reserve Bank of India (RBI) publications, stock exchange records, and other reliable financial databases. Descriptive statistics and a paired sample t-test are used to compare the financial performance of banks before and after the merger. The findings reveal whether mergers and acquisitions have significantly improved the long-term financial performance of Indian banks and contributed to sustainable growth. The study provides valuable insights for policymakers, investors, banking professionals, financial analysts, and researchers regarding the long-term impact of mergers and acquisitions in the Indian banking sector.