This study analyzes the impact of merger on the shareholder’s wealth through Economic Value Added (EVA) and Market Value Added (MVA) in Indian Banking Industry. The paper explains the major strategic reasons and various challenges of the high profile mergers of Indian Banking Industry. The paper has attempted to find out the impact of the merger on the acquirer bank’s profitability ratio, on its different variables like EVA, MVA, etc. This study also explores the fact that there is very little impact of the sub- prime crisis on the merger outcomes.