MERGERS AND ACQUISITIONS ANNOUNCEMENT IMPACT ON ACQUIRING FIRM’S STOCKS RETURNS IN INDIAN BANKING SECTOR

The objective of the present study is to analyse the merger and acquisition's impact during the announcement on stocks return of acquirer banks which are listed in National Stock Exchange. This study is conducted across Indian banking sector consisting of 4 major banks merger in the year of 2019. The event study methodology has been applied for the event window of 11 days, 21 days and 61 days, i.e. -5 to +5 days stock returns, -10 to +10 days stock return and -30 to +30 days stock returns respectively. The shareholders return of acquiring banks and abnormal returns due to announcement of merger and acquisition have been examined. Findings of the present paper suggests that M&A announcement in banking sector in India leads price to downgrade for acquirer bank though the pattern was not consistent. The results are in consistent with the findings by Kumar et al. (2011), Onikoyi et al. (2014) and Mall & Gupta (2019).