Impact of Mergers and Acquisitions on Financial Inclusion in Public Sector Banks in India

This paper examines the impact of public sector bank (PSB) mergers and acquisitions (M&A) carried out in India between 2017 and 2020 on financial inclusion outcomes. India’s banking consolidation-marked by the 2017 SBI consolidation and the 2019-2020 “mega-merger” programme-rearranged the PSB landscape, creating larger anchor banks. Using secondary numerical data from government releases, RBI/PSB annual reports, the PMJDY dashboard, World Bank Global Findex and Department of Financial Services/RRB reviews, the study analyses national-level trends in account ownership, PMJDY outreach, branch networks (including RRBs), and post-merger scale indicators. Findings show that consolidation coincided with continued expansion in aggregate account ownership (35% of adults in 2011 → 78% in 2021) and large cumulative PMJDY account volumes, while the role of RRBs and Business Correspondents (BCs) remained crucial for last-mile outreach. However, mergers produced mixed local effects: scale gains and better digital capacity on one hand, and branch rationalization and temporary local service disruptions on the other. The paper concludes with policy recommendations to ensure consolidation supports equitable and sustainable inclusion.