Understanding the Impact of Merger and Acquisition Activities on Indian Banking Sector from Customer's Perception

Abstract

This research investigates the impact of merger and acquisition (M&A) activities on customer perceptions within the Indian banking sector. Through a mixed-methods approach, data was collected from 515 customers of public sector banks, focusing on factors such as service quality, accessibility, trust, and perceived value. The findings reveal a mixed response from customers, with a significant portion acknowledging improvements in service quality and increased accessibility post-M&A, while others express concerns regarding trust, responsiveness, and empathy of banks. Notably, both increased and decreased trust towards banks post-M&A are reported, emphasizing the importance of communication and transparency during M&A processes. Perceptions of service quality dimensions vary among customers, highlighting the need for consistent and customer-centric service delivery. Despite challenges, M&A activities hold potential for driving positive changes in the banking sector, including efficiency gains and enhanced service offerings. To realize these benefits, banks must prioritize customer satisfaction, trust, and service quality, fostering transparency and engagement throughout the M&A process. Continuous dialogue with customers and strategic implementation of feedback are recommended to navigate the complexities of M&A activities successfully.