An Examination of Punjab National Bank's Performance Prior to and Following the Merger

However, to build own operational strength and sustainability in financial resilience one of the structural changes made was India's Public Sector Bank (PSB) Consolidation. On the 1st of April, 2020, three major banks came together for a mega merger: the United Bank of India (UBI), Oriental Bank of Commerce (OBC) and Punjab National Bank (PNB). Additionally, NPAs of merging banks are also sizeable, and this merger will not only expand PNB's market reach but also operate at a larger scale. The methods used to collect the data also includes financial newspapers, annual report of Punjab National Bank (PNB) and RBI Financial Stability Reports (FSRs) along with the announcement of merger by RBI. By carrying out this analysis, the objective is to find PNB NPA levels along with recovery trends and estimates of bank health for the period from 2015–16 to 2024–25 post its merger. To compare the two time periods before and after the merger, a t-test was used for NPA, Net NPA, and (Cost-to-Income). It was also used to test an ap priori confidence level for a significant difference in Asset Quality and Profitability. Important Financials parameters are also stated in this study such as Operational Effectiveness, Profitability, Asset Quality & ROA, ROE, NIM & Gross. A considerable variation in terms of mathematical metrics relating to the banks selected such as Net Profit, ROE & ROA. On the other hand, this distinction does not quite happen for Cost-to-Income ratio, Net Interest Margin (NIM), and Gross Non-Performing Assets (NPA). Punjab National Bank (PNB) loses out on a successful merger.