Mergers and acquisitions are the important process in the banking industry to make financial gains enormously. Main aim of merger and acquisition in the banking sectors is to improve the economies of scale. A merger means combination of two companies into one company. During the merging process one company survives and the other company loses their corporate existence. On the other hand acquisition means takeover. Mergers and acquisitions are these days common choices for business survival and development. They imply the difference of enterprises to new conditions being one in every of them, the mixing of the enterprises concerned within the deal. That integration is achieved through strategic actions in structure processes and structures, in addition as through the management of the subjective conditions that support human performance. one in every of these conditions is that the individual and team identities. The identity plays a vital mediating role within the adaptation and integration as a result of the mutual acknowledgment of the self and therefore the different in any social interaction has the facility to influence the social interaction. Mergers and acquisition bank not only gets new brand name, new structures, product offerings but additionally give opportunities to cross sell the new accounts acquired. The process of mergers and acquisition is not new in the banking industry. This paper deals with the mergers and acquisitions, types of merger, legal framework, approval of Reserve Bank of India and historical perspectives of banks M& A, impact of mergers and acquisition in banking industry.
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