Study on Impact of Mergers & Acquisitions on Non-Performing Assets (NPA) of Banks: with reference to selected cases of ICICI Bank Limited

To keep a higher position in a globalized economy, one has to follow the path of growth, which contains various challenges and issues; one has to want to overcome these challenges and issues to become successful. Mergers and acquisitions in the bank history are achieving increasing importance and attention especially with the advent of intense globalization. Mergers and acquisitions encourage banks to gain global reach and better synergy and allow banks to acquire the stressed assets of weaker banks. Mergers and acquisitions have become a global phenomenon to achieve economies of scale and higher productivity. The need for banks to merge becomes even more imperative in the face of the onslaught of greater competition arising from globalization. This research paper aims to analyze the impact of mergers and acquisitions on Non-Performing Assets and profitability. For the study data is collected from secondary sources. The best indicator of the banking industry's health is its level of non-performing assets (NPAs). It reflects the performance of banks. It has a direct impact on the profitability, liquidity and solvency position of the bank. This study evaluated the trends of NPA and factors that mainly contribute to rising NPA. NPAs do not just reflect badly in a bank’s account books; they adversely impact the economy. This paper also examines the causes of NPAs and their impact on banking operations.