Mergers in the Indian Banking Sector under AS-14 and IFRS-3: A Comparative Analytical Study
Abstract
The Indian banking sector has experienced substantial consolidation over the past decade in response to escalating non-performing assets, capital adequacy pressures, governance concerns, and regulatory reforms. This research critically examines the accounting treatment of major banking mergers under Accounting Standard 14 and IFRS-3, implemented in India through Ind AS-103. The study evaluates differences in valuation methodology, goodwill recognition, impairment testing, reserve treatment, and disclosure requirements, and analyses their impact on financial transparency, capital adequacy representation, and stakeholder confidence. A descriptive and analytical research design is adopted using secondary data drawn from annual reports and regulatory disclosures of State Bank of India, Bank of Baroda, Punjab National Bank, and HDFC Bank. The findings indicate that book value accounting under AS-14 often deferred recognition of embedded credit risk, whereas acquisition-based fair value accounting under IFRS-3 improved early risk identification and comparability. Although IFRS-3 may introduce short-term earnings volatility due to impairment adjustments, it enhances long-term governance quality, regulatory alignment, and investor trust. The study concludes that fair value-based acquisition accounting provides a more transparent and reliable framework for large-scale banking mergers in India
Keywords
Banking mergers, AS-14, IFRS-3, Ind AS-103, Fair value accounting, Goodwill, Indian banking sector
Citations
IRE Journals:
Akshay Tiwari, Dr. Rashmi Tripathi "Mergers in the Indian Banking Sector under AS-14 and IFRS-3: A Comparative Analytical Study" Iconic Research And Engineering Journals Volume 9 Issue 9 2026 Page 24-31 https://doi.org/10.64388/IREV9I9-1714772
IEEE:
Akshay Tiwari, Dr. Rashmi Tripathi
"Mergers in the Indian Banking Sector under AS-14 and IFRS-3: A Comparative Analytical Study" Iconic Research And Engineering Journals, 9(9) https://doi.org/10.64388/IREV9I9-1714772
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 8:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12