📄 Abstract
The consolidation of Public Sector Banks (PSBs) in April 2020 marked a significant reform in Indias banking sector, aimed at improving financial stability, operational efficiency, and overall resilience. This study examines the impact of these mergers on the financial soundness of selected Indian PSBs- Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank that were merged during this phase of consolidation. The study adopts a pre- and post-merger comparative framework using secondary data sourced from bank annual reports and database of the RBI. Financial performance is evaluated using key indicators related to asset quality, profitability, capital adequacy and operational efficiency. These include GNPA, NNPA, ROA, ROE, CRAR, NIM, and Business per Employee. The analysis covers the pre-merger period from 2017 to 2019 and the post-merger period from 2021 to 2023, with the transition year 2020 excluded to avoid distortion from merger-related adjustments. To evaluate the statistical significance of performance changes, the Independent t-test is applied. The results indicate improvements in several indicators; however, these changes are not yet statistically conclusive due to the limited post-merger period. The findings suggest that the full benefits of consolidation are likely to materialise over the medium to long term.
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📚 How to Cite:
Ms. Pratibha Rangdal, Prof. S. B. Kamashetty , IMPACT OF BANK MERGERS ON FINANCIAL SOUNDNESS: A STUDY OF APRIL 2020 PSB'S CONSOLIDATION , Volume 14 , Issue 1, January 2026, EPRA International Journal of Economic and Business Review(JEBR) , DOI: https://doi.org/10.36713/epra25796