STRATEGIC CONSOLIDATION IN INDIAN BANKING: A COMPREHENSIVE ANALYSIS OF THE MERGER BETWEEN KOTAK MAHINDRA BANK-ING VYSYA BANK

Mergers and Acquisitions (M&A) is a tool to restructure and consolidate multiple businesses to achieve increased efficiency and competitive advantage in the business. The world has seen numerous M&A for years and have identified few key benefits and risks over the years. The banking industry is a most vital part of the economy for development and stability. The banking industry of India has witnessed several forced and voluntary mergers in the past few years since globalization. In the paper, the research is focused on merger of Kotak Mahindra Bank and ING Vyasa Bank for the study and wherein have analyzed the pre and post-merger profitability ratios such as the net profit margin, operating profit margin, return on net worth, return on assets. Our findings reveal that the merger significantly influenced Kotak Mahindra Bank's financial performance and profitability. Analysis has been on comparative year-on-year growth percentage on the consolidated financials from the year of merger. Upon analysis it has been observed and concluded that the merger assisted in better financial growth rate. It has been observed and concluded that the merger gives the benefits of operation efficiency, economics of scale and scope of expansion.