Author(s): Nikunj Chaudhary, Rajendra Sahu and Vaibhav Agarwal
This study aims to explore interdependencies among the key determinants influencing mergers and acquisitions (M&As) in the banking sector. It addresses the need to understand these interrelationships to identify the possible causes and effects of M&As, which can help subsequently in improving functioning and performance of banks. Key factors related to mergers and acquisitions were identified from a literature review and expert consultation. Then, the causal relationship among them were empirically analyzed through DEMATEL analysis. The findings reveal that global competitiveness is the most important criterion, having mutual interrelationships with income, synergy, risk diversification, growth, size, capitalization, and financial diversification. Synergy, growth, capitalization, financial diversification, and global competitiveness were found to be net cause factors, while income, survival position, risk diversification, NPA, and bank size were identified as net effect factors for M&As.