Comparative Evaluation of Performance and Strategic Intentions in Public and Private Bank M&As

Abstract

In the banking industry, the growing trend of buying and merging has become a crucial tactic for attaining financial stability, market expansion, and operational efficiency. The performance results and strategic motivations of M&As in public and private sector banks are compared in this study. The study looks at important factors such market competition, technological innovation, regulatory pressures, and risk diversification using both Indian and foreign literature. The analysis draws attention to the different post-merger performance of public and private banks using financial performance indicators, such as profitability ratios, efficiency scores, and shareholder value measurements. Private bank mergers are typically market-driven, focussing on client base expansion, innovation, and synergy creation, whereas public sector bank mergers are frequently policy-driven and targeted at consolidation and systemic stability. Post-merger success is impacted by gaps in integration procedures, leadership alignment, and cultural fit, according to the report. The study advances knowledge of how ownership structure affects M&A results in the banking sector by fusing empirical data with theoretical ideas. Policymakers, investors, and bank management looking to improve merger strategies and guarantee long-term financial sustainability can benefit greatly from the findings.