The purpose of this study is to examine the impact of mergers on the share prices of acquiring banks in India during the post-reform period, specifically analyzing the influence of various financial factors on these share prices. For this, the relationships between various financial determinants—total assets, net advances, and liabilities—and share prices in the banking sector, particularly in the context of mergers and acquisitions have been examined. This research utilizes a quantitative approach, collecting data from the annual reports of selected acquiring banks (Punjab National Bank, Bank of Baroda, IDBI Bank, HDFC Bank, and ICICI Bank) for the period from 2000 to 2023. Multiple regression analysis is conducted using SPSS to assess the impact of total assets, net advances, liabilities, customer deposits, and profit before tax on share prices. Utilizing correlation analysis, the research reveals that liabilities significantly negatively impact share prices (r = − 0.841, p = 0.000), indicating that higher debt levels are associated with lower market valuations. Conversely, the relationship between total assets and share prices is weakly positive (r = 0.209, p = 0.083) and not statistically significant, while net advances show no significant correlation with share price fluctuations (r = 0.010, p = 0.934). These findings underscore the critical role of effective liability management in influencing investor confidence and share valuations, highlighting the complexities of financial metrics in the banking industry.