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Volume II, Issue 1(3), 2026
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Mergers and acquisitions are noteworthy corporate strategic measure that assists the merged entity in external growth and afford it competitive advantage. The study tries to evaluate methodically the consequence of merger of United Western Bank along with Industrial Development Bank of India in 2006 and subsequent merger of IDBI bank with LIC of India in 2019 on their financial performance in terms of different financial parameters for the period from 2004-05 to 2024-25 dividing the entire period into two phases. Most of the financial indicators of Industrial Development Bank of India (IDBI) after undergoing merger with United Western Bank (UWB) in 2006 and LIC of India in 2019 exhibit noteworthy progress in their outfitted performance during post-merger period.
Post-merger regression analysis suggests that impact of management quality, capital adequacy and sensitivity to interest rate risk on profitability (ROA) parameter have improved much in comparison with entire study period’s regression analysis (both pre- and post-merger taken together) in both mergers. It can be inferred from the regression analysis that merger of these above two banks and subsequently with LIC has significant impact on earning capabilities of the Bidder Bank (IDBI) in terms of creating synergy through augmented managerial efficiency and subsequently by capital adequacy and non-interest income related sensitivity.
© The Author(s) 2026. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 22nd of December, 2025; Revised 17th of January, 2026; Accepted for publication 27th of January, 2026; Available online: 2nd of February, 2026; Published as article in Volume II, Issue 1(3), 2026.
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Why do some developing countries sustain coherent institutional trajectories over long periods, while others cycle between reform, crisis, and incomplete recovery? Conventional measures of institutional quality emphasize levels of democracy, governance, or rule of law, yet they struggle to explain why countries with similar scores exhibit sharply different patterns of institutional persistence and rupture. This article advances a structural perspective on institutional stability, conceptualizing institutions as interdependent subsystems whose coherence, or misalignment, shapes long-run developmental trajectories.
To operationalize this framework, the article introduces the Institutional Regime Stability Index (IRSI), a dynamic measure that captures the persistence of coherent institutional configurations rather than static institutional levels. Using comparative data for nine Latin American countries between 1900 and 2024, the analysis identifies three recurrent patterns of institutional development: resilient coherence, adaptive stability, and recurrent misalignment. Higher IRSI values are systematically associated with lower GDP growth volatility and greater capacity to attract foreign direct investment, linking institutional coherence to economic risk and policy credibility. By reframing institutional stability as a property of systemic coherence, the IRSI offers a new comparative lens for analysing development and institutional change.
© The Author(s) 2026. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 10th of January, 2026; Revised 27th of January, 2026; Accepted for publication 2nd of February, 2026; Available online: 6th of February, 2026; Published as article in Volume II, Issue 1(3), 2026.
