A Study of Punjab National Bank (PNB) Financial Performance: Both Pre and Post Merger

The banking sector plays a unique role in the country's economic development. It acts as the key driver of the Indian economy, as no economic activity will sail smoothly without an adequate amount of funding, which is mostly provided by the banking sector. Banks are considered the backbone of the growth and development of the Indian economy, so there is a need to strengthen them. In order to make Indian banks more efficient and effective, the government of India has taken a very crucial step, i.e., the merger of banks. The Indian government has conducted a series of mergers in 2019, combining 10 public sector banks into four larger entities. This paper examines the impact of the merger of Punjab National Bank with Oriental Bank of Commerce and United Bank of India from the year 2017 to 2023. The study has reviewed various research articles in order to understand the impact of the merger on the financial performance of PNB. The pre- and post-merger performance of the bank has been analysed using four parameters: Capital, Assets, Earning and Liquidity. The study shows that the merger of banks has been crucial for improving the overall performance of banks as it enlarges their earning capacity and reduces their NPA.