Mergers and Acquisitions in Indian Banking Sector

This paper looks into the effects and outcomes of mergers and acquisitions (M&A) in India’s banking sector regarding performance, satisfaction among customers and insights from employees. Both 60 responses from bank customers and employees (in SBI, Bank of Baroda or Indian Bank) and financial data from the records and annual publications, have been included using the mixed-methods approach. It turns out that, although mergers are meant to help with achieving scale, efficiency and meeting the law, their actual results are varied. The indicators of Return on Assets and Net Profit Margins go down after a merger, but they improve a lot in the following two years, showing that the merger pays off. However, switching to a new system usually causes problems such as interrupting services, confusing customers, making employees stressed and causing mood issues which suggests there are flaws in how information and systems are brought together. According to the study, banks in India should pay equal attention to financial, technological, human and customer elements when trying to make a merger work.