Abstract:

Merger and Acquisition are important strategic tool in the banking sector, it helps the Indian bank as well as the Indian economy by maintaining the bank healthy. This study helps to identify the impact of the merger in stock price announcement and also examine the growth rate impact of pre- and post-merger period. The event study methodology is used to identify the impact of merger in stock price announcements in Mega merger banks. The financial ratio is used find the growth rate impact of pre- and post-merger period. The findings of the study are merger gave negative impact to the Canara, Indian bank, positive impact to the Punjab national bank and Union Bank of India.