A STUDY ON MERGERS AND BANKS PERFORMANCE IN INDIA

Authors

  • h. s. vyas Registrar

Keywords:

Driven Merger, Forced Merger, Banking Industry

Abstract

In today’s globalised economy, mergers and acquisitions (M&A) are being increasingly used the world over, for improving competitiveness of companies through gaining greater market share, broadening the portfolio to reduce business risk, for entering new markets and geographies, and capitalizing on economies of scale etc. This research aims at evaluating the synergies gained from bank mergers by dividing them into two categories of forced mergers and market driven mergers. The result indicate that market have reacted negatively to the announcement of forced mergers while the reaction has been positive to that of market driven mergers. In line with the market expectation, forced mergers have not added any value to financial performance of merged banks in the post merger period. Although market driven mergers have not immediately improved the financial performance of merged banks, but they have improved the operating performance of merged banks and have provided these banks an edge over the competitors in terms of geographic dispersion and thus have provided a better vehicle growth.

Additional Files

Published

2019-04-16

How to Cite

vyas, h. s. (2019). A STUDY ON MERGERS AND BANKS PERFORMANCE IN INDIA. NOLEGEIN-Journal of Corporate &Amp; Business Laws, 1(2), 25–30. Retrieved from https://mbajournals.in/index.php/JoCBL/article/view/242