Vol. 9, Issue 8, Part B (2023)

In an open economy four sectors named household sector, production sector, government sector and foreign sector play important role. But Banking Sector play a vital role for the growth of all above mentioned sector. Keeping this in mind, there is a need of sound banking system. After independence Indian government adopt banking sector reforms and the same converted many Banks from private to Nationalized and in this process 27 banks were nationalized by government including SBI with their associated Banks and RBI (Central Bank of India). Financial sickness of banks in public sector became major problem for the growth of economy as per govt. analysis sector banks. During economic reform government of India was forced to reduce public sector Banks and increases private sector and also solved the problem of NPA in banking sector and make ready banking sector globally competent. So, on 1st April 2017 SBI and its associates Banks were merged. It was largest merger in Indian banking history. Continuously, in August 2019 the Finance Minister Nirmala Sitharaman announced in a press Conference that Indian government has decided to merge public sector banks and the number of 27 public sector banks exciting in 2017 will be reduce to 12. The main reason behind this NPA. For renovating public sector banks the government of India is deciding to merge to create efficiency of public sector banks. This paper attempts to analysis the impact of public sector banks mergers especially of SBI. This merger will help to reduce high rate of NPA or not. In this context, the study analyses the financial performance of the SBI before and after merger.