Abstract

The study examines the long run effects of mergers and acquisitions (M&A) on the financial performance of Canara Bank concentrating on critical financial ratios over a six-year span from 2017 to 2023 with an aim to evaluate the bank’s financial health following mergers and acquisitions (M&A). It assesses five financial aspects: profitability, financial coverage, efficiency, capital structure and liquidity utilizing statistical methods that included ANOVA and the Kruskal Wallis Test in order to analyze significant trends and changes in the ratios. The results demonstrate that
such activities notably impacted profitability, efficiency, and capital structure ratio, highlighting both operational challenges and strategic advantages. In contrast, financial coverage and liquidity ratios remained consistent, indicating the bank’s ongoing capacity to meet short-term obligations and maintain financial stability. These findings emphasize the complex financial consequences of mergers and acquisitions (M&A), providing essential insights for bank management, policymakers, and stakeholders. The study concludes with strategic recommendations to improve post-merger integration processes and ensure long term financial viability. The research adds to discussions on mergers and acquisitions (M&A) outcomes in banking industry, in the light of evolving market
conditions.