Asset Quality and Operational Performance of Indian Public Sector Banks- Pre- and Post-Merger Analysis

This paper examines the impact of recent mega mergers among India’s public sector banks on asset quality and operational efficiency, employing descriptive statistics over five-year pre- and post-merger periods for five major Indain public sector banks By analysing change in Gross and Net NPAs alongside changes in branch networks and workforce size, the study uncovers varied outcomes: while several banks achieved notable improvements in asset quality and operational metrics, others continued to grapple with integration hurdles and legacy-driven challenges. The results underscore that merger outcomes are highly bank-specific, shaped by historical conditions and strategic adaptability, and emphasise the need for nuanced, institution-tailored approaches by policymakers and management when pursuing sustainable consolidation and enhanced financial robustness. The findings also highlight the complex, bank-specific impact of mergers in the Indian context and suggest that structural reform outcomes depend greatly on the interplay of legacy factors and operational strategy