Predicting Stock Market Trends: A Comparative Study Of Time Series Forecasting Models Using Historical Stock Prices

Abstract

The Indian banking industry has undergone a series of structural and strategic transformations over the past few decades, particularly through mergers and acquisitions (M&A). These consolidations have often been implemented as corrective measures to address inefficiencies, bad loans, and financial distress among public sector banks (PSBs). Rooted in the concept of resource optimization, mergers have emerged as a crucial instrument for stabilizing and strengthening India’s financial ecosystem. This paper explores the historical evolution, rationale, and impact of banking mergers in India, highlighting both the advantages and challenges associated with them.
The study underscores that mergers can enhance operational efficiency, reduce redundancy, expand market reach, and improve capital adequacy. However, it also recognizes the complexities involved—ranging from valuation ambiguities and stakeholder dissatisfaction to cultural integration and data management issues. An analysis of India’s banking merger timeline since 1969 reveals significant consolidation, with institutions like the State Bank of India and Punjab National Bank leading the process. Empirical observations indicate that larger banks have maintained stronger market capitalizations post-merger, reflecting improved stability though not necessarily higher profitability.

The research emphasizes the importance of effective stakeholder communication and strategic governance to ensure that mergers achieve their intended synergies without compromising financial inclusivity or employment stability. By examining both qualitative and quantitative aspects, this paper provides an integrated understanding of how mergers have shaped India’s banking landscape, offering insights into their long-term viability and implications for economic development.

DOI - https://doi.org/10.65525/SVUP.9788199651586.2026.108-126