Abstract

India is a country whose economy is growing at a faster rate in the world. These days commercial banks face lot of problems for branch expansion in order to expand their area of operations because it involves a very high cost. Secondly, investors judge the performance of commercial bank on the value of its share price. Commercial banks in today’s environment face tough competition from the private banks in terms of profitability, low operating costs, rising NPA’s and high share prices. Keeping the above problems in mind the following topic “Impact of Mergers and Acquisition on Financial Performance of Indian Commercial Banks” have been selected. In the globalized economy Merger and Acquisitions acts as an important tool for the growth and expansion of the economy. Merger is a combination of two or more companies through the pooling of interests. The name of the company after merger can be a new company’s name or follow either buyer or the seller company’s name. Furthermore, an acquisition is one company taking over controlling interest in another company.