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This study aims to understand mergers and acquisitions activities in the Indian banking industry in the post-liberalisation period. The Indian banking industry witnessed a massive transformation in the post-liberalisation period, and triggered by economic development, the industry has emerged as one of the biggest drivers of economic growth. The industry has further undergone significant developments, with recognition of the importance of private and foreign players in the Indian market. In the light of the changing environment and ever-increasing competition, different strategies are adopted in the banking industry today. One such prominent strategy is mergers and acquisitions, which act as an important process for growth and expansion. This study analyses the impact of the mergers and acquisitions activities on the performance and profitability of banks. For the purpose of the study, five case studies of mergers/acquisitions in the post-liberalisation period have been analysed. The analysis includes comparision of financial statements, conducting ratio analysis using five-year pre- and post-merger data, and also examination of the effect of merger announcements on the share prices.