The banking sector plays a vital role in strengthening national economies and facilitating economic growth in a globalised environment. A sound and responsible banking system is essential for maintaining financial stability and improving the efficiency of financial institutions. The Reserve Bank of India (RBI) uses various supervisory rating models, including CAMELS, EAGELS and CAGS for assessing the financial soundness and performance of banks. The present study aims to examine the financial performance of Indian public sector banks that underwent mergers during the period under consideration by applying the CAGS model. The study analyses thirteen financial ratios covering four major dimensions: Capital Adequacy, Asset Quality, Growth, Systems and Control. The study covers the period from 2017 to 2022, encompassing the pre- and post-merger performance of the selected public sector banks. Secondary data have been collected from the Prowess IQ database and the annual reports of the respective banks. The CAGS model has been employed as an accounting-based evaluation framework, while the paired-sample t-test has been applied to determine the significance of differences between the pre- and post-merger periods. The findings reveal that the null hypothesis is accepted, indicating that the mergers have not resulted in statistically significant improvements in the overall performance of the selected public sector banks. The results further suggest that mergers and acquisitions have not generated substantial synergies in terms of operational efficiency and financial performance during the study period. The study provides empirical evidence on the impact of banking mergers and offers useful insights for policymakers, banking institutions, and researchers concerned with the future strategic direction of the Indian banking sector.