Value Unlocking Through M & A: An Insight From Bank Of Baroda’s Strategic Consolidation

Abstract

This study delves into the theme of value unlocking through M&A: an insight from bank of Baroda’s strategic consolidation, Amid rising competition in the Indian banking landscape, M&A has become a strategic tool to boost operational efficiency, increase market presence, and extend geographical coverage. The spotlight is on BOB’s landmark merger in 2020 with Dena bank and Vijya bank, marking one of the most significant consolidations in the nation's banking history. This research evaluates the financial outcomes of the merger by analysing its impact on key performance indicators such as profitability, asset quality, and NPA’s. A comparative study of financial data from before and after the merger reveals that, although the bank faced early challenges related to integration and asset quality, it successfully capitalized on economies of scale, minimized overlapping functions, and expanded its clientele. These improvements collectively contributed to stronger financial results. Furthermore, the study addresses integration complexities and risk management concerns, providing meaningful insights into how M&A can serve as an effective avenue for value creation within India’s banking sector.