The Role of Mergers and Acquisitions in Achieving Economies of Scale: An Empirical Study

This study aims to find out the role of mergers and acquisitions (M&A’s) in achieving economies of scale in the banking sector. M&A's are strategic tools that improve the operational efficiency, market share, and cost savings for the firms. In 2019, the Government of India initiated major consolidation of Public Sector Banks (PSBs) merging 10 banks into 4 larger banks. These stronger banks were expected to compete at a global level with the aim of addressing operational inefficiencies and improving upon their non-performing assets (NPAs). The research attempts to empirically examine the mergers and their influence on the operational performance, cost-efficiency, and market standing through qualitative and quantitative approaches.