This paper utilizes the non-parametric frontier approach, Data Envelopment Analysis (DEA), to analyze the technical and scale efficiency of HDFC and SBI bank during the merger year, pre-and post-merger period. For this purpose secondary data was collected from the RBI database. It is found that HDFC and SBI banks exhibited a commendable efficiency level from 2005 to2018 and thereby improving governance in these banks. Our results suggest that the merger program was successful for both HDFC and SBI banks, which have benefited from the merger and acquisition via economies of scale and simultaneously improving governance in these banks.

Keywords: Efficiency, Merger and Acquisitions, Governance, Data Envelopment Analysis.