The study intends to explore the motivation behind the Merger and Acquisitions in the Indian banking sector. It compares and examines the pre and post merger financial performance of merged bank using  financial parameters like Return on Capital Employed (ROCE), Net- Profit Margin,  Gross-Profit Margin, Return on Equity (ROE), Operating Profit Margin and Debt-Equity Ratio.  The study is conducted on Canara bank and the financial reports are collected for a set of various financial parameters. This study examines the changes occurring in the Canara Bank on the basis of financial ground and also the overall impact of Merger and acquisitions (M&As) on Canara bank. The Researcher used paired t-test for testing the statistical significance and this test is applied not only for the ratio analysis but also to test the effect of Merger and Acquisitions on the performance of banks. The performance is being tested considering before and after effects i.e. Pre- merger and Post- merger. The evidence indicates that the bank has been positively affected by the event of M&As but no strong statistical evidence is seen. However, the merged bank can gain and obtain efficiency through this restructuring and pass the benefits to their equity shareholders.

KEYWORDS: Merger & Acquisitions, Banking, Financial performance, Efficiency.