The Economic reforms initiated by the Government o f India during the mid o f 1991 altered the business environment radically. The policy changes through LPG and IT helped our financial institutions for multifaceted growth. As a result financial awareness has contributed to dynamism in the Indian economy. Banking is the most leading sector in India and has been among the top performers in the markets. Banks are the front line financial institutions in our economy working under intense and healthy competition. Indian banks have opted for Mergers and Acquisitions (M&A) as a strategic tool for global entry mode and expansion in future. Mergers and Acquisitions is a pre-requisite that lead banks to the phase o f consolidation amongst banks in future. This paper focuses on a comparison ofpre and post merger o f banks and its operational performance measured through selected II ratios.