The Indian banking industry has undergone a number of reforms throughout the years with the goal of improving asset expansion to promote national economic expansion. There is abundant evidence that the RBI has heavily relied on bank capital reforms in addressing issues of underperformance in the industry to attain this goal. Bank mergers shield struggling institutions from failure and closure. The main goal of this initiative, which has been taken also by RBI, is to achieve expansion at the strategic level in terms of scale and client base. As a result, the combined bank's ability to create credit is greatly increased. Bank mergers give the institution more strength to endure in a shifting economic climate. The weaker banks can more easily adapt and expand in the domestic and global financial markets through mergers. The development of a robust, competitive, and trustworthy banking system is a crucial element of mergers and acquisitions in the banking sector. This paper gives an overview of mergers & acquisitions in the banking sector. The study also provides insights into various stimulators of mergers in the banking sector. The paper adds to the existing literature by focussing on the benefits, challenges and solutions to the challenges of amalgamation of banks.

Keywords : Mergers, Acquisition, Banking, Reforms.