Vol. 8, Issue 6, Part E (2022)

Abstract
Although, Merger of banks is not a new occurrence, yet it has received considerable limelight in the banking sector. this paper attempts to analyse the proposed mega merger announced on 4 April 2022, of two giant companies HDFC limited with HDFC Bank, also discuss its benefits, effects on other banks and concludes that Merger of HDFC limited with HDFC Bank would prove to be a win-win situation for both the companies due to the economies of scale, diversified product offerings cost synergies and balance sheet flexibility. After merger, combined capabilities of both entities will result in more profitability and both entities will utilise each other’s strength to their merits. India’s largest conglomerate would be produced through this merger, which lead to sell products to more than 68 million customers. Impact on the share prices is positive for both entities. Apart from this, the mega merger will prompt other banks towards mergers and acquisitions to maintain their market share. Furthermore, the market share gap between SBI and HDFC Bank will be narrow down after merger.