📄 Abstract
The consolidation of public sector banks through mergers has been a major reform initiative aimed at improving the financial strength, operational efficiency, and competitiveness of the Indian banking sector. In this context, the present study examines the impact of the merger on the financial performance of Punjab National Bank (PNB) using the CAMEL framework. The study is based on secondary data collected from the audited annual reports of Punjab National Bank for the pre-merger period (2017–2019) and the post-merger period (2021–2023), while the merger year (2020) has been excluded to avoid transitional effects. The financial performance of the bank has been evaluated using selected indicators of Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity. Descriptive statistics, the Wilcoxon Signed Rank Test, effect size analysis, and trend analysis have been employed to compare the bank's performance before and after the merger. The findings indicate an overall improvement in the financial performance of Punjab National Bank following the merger. Capital adequacy strengthened, asset quality improved through a reduction in non-performing assets, management efficiency and earning efficiency increased, and the liquidity position remained stable during the post-merger period. Although the Wilcoxon Signed Rank Test did not reveal statistically significant differences for most indicators, the effect size and trend analyses suggest meaningful practical improvements in the bank's financial performance. The study concludes that the merger contributed positively to enhancing the financial stability, operational efficiency, and overall performance of Punjab National Bank. The findings provide useful insights for policymakers, banking professionals, and researchers in evaluating the effectiveness of bank consolidation in India.
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📚 How to Cite:
Neha Pushpak, Prof. Atul Joshi , IMPACT OF THE MERGER ON THE FINANCIAL PERFORMANCE OF PUNJAB NATIONAL BANK: A CAMEL MODEL ANALYSIS , Volume 13 , Issue 8, August 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 174 - 181 , DOI: https://doi.org/10.36713/epra31270