Effect of merger and acquisition on financial performance in the Indian banking sector

Purpose: Mergers and acquisitions are forms of corporate restructuring. This study was conducted to examine the performance of banking sector after merger and/or acquisition during the period 2015-2023. Design and Methodology: - The variables used in this study are financial ratios such as Return on assets, Return on equity Operating profit margin ratio, Earning per share, and Return on capital employed. The sample was selected using a non-probability purposive sampling method. Data is analyzed using a descriptive statistical test, and hypothesis test (t-test- paired two sample mean test). This study used paired sample t-test to analyse two different paired samples using the MS Excel. Findings: - The results from this study show that the Operating profit margin not affected by mergers and return on capital employed while return on asset, return on equity and earnings per share significantly affected by mergers and acquisition. Significance of the study: -It provides valuable insights for companies considering mergers and acquisitions in the Indian market of Banking sector, informs stakeholders when evaluating the potential advantages of consolidation, and offers recommendations for future research to provide a clearer understanding of the impact of mergers and acquisitions on financial performance in the Banking Sector of Indian market.