Bank mergers have benefited both the acquirer and the acquired, according to a report by Reserve Bank of India researchers. While the transactions have helped improve the efficiency of the acquirer banks, they have added to shareholder value for banks that have been acquired.
The findings of the paper confirm that banking mergers in India have been, on an average, beneficial to the banking sector as the financial performance and efficiency of the acquirers improved after the merger. These findings are also valid for recent bank mergers during 2019-2020, for which only limited data are available so far.