Abstract
With the recommendation of the Narasimham Committee (1991), the Indian banking sector saw a soar in M&A with the objective of value creation, but the existing literature does not provide any conclusive evidence in respect of value creation for sharehold- ers. Therefore, in the present study, an attempt has been made to investigate whether the M&A announcement generates value to the shareholders or not. By employing event study methodology, the study observed signiÖcant negative abnormal returns during the post-M&A announcement period for both overall market and individual banking sector stock. The re- turns further deteriorated in the long run with signiÖcant negative BHAR. Thus, the study concludes that the M&A did not create value to the shareholders; instead, it deteriorate the shareholdersívalue
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