Covid-19 situation is one of the worst pandemic situation, where world faced more constraints in several decades, banking in service sector can be said as the most essential element in the growth of corporate sector India and most parts of the world, we can take example of EU growth (European Union), where the availability of funds for investment in EU was started several decades back, so only we can find most of the European nations are developed economies with good banking “Corporate sector”. The government has to manage the resources and growth of the economy through flexible Fiscal and Monetary policies, with the qualitative and quantitative methods or control by RBI (Reserve Bank of India). The banking sector of Karnataka has seen various changes in merging of banks, according to the recent statistics, on April 2020 “Bengaluru, SEP 01 2019, While Corporation Bank will merge with union bank of India and Andhra Bank, Syndicate Bank. the problem of unemployment may arise due to merging of banks, we can see unemployment arises due to merging of small banks to the nationalised banks, ex: where “state bank of Mysore (SBM), and other six were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT), were individual banks, but later stage it was merged to SBI (State Bank of India), Andhra Bank and Corporation Bank were merged with Union Bank, while Oriental Bank of Commerce and United Bank were merged with PNB “Punjab National Bank”. Syndicate Bank has been merged with Canara Bank, while Allahabad Bank with Indian Bank. The mergers took effect from April.2020. Dena bank and Vijaya bank were merged with Bank of Baroda in 2019. where there was some protests by the regional working employees, due to losing their jobs, we have seen many examples where employees was forced to leave the job by creating some pressure by to top management. The employee’s security is very important aspect with the growth of the banking corporate sector or the growth of the banking economy. The merger of several banks by the present Government from 2020 was a good move in inspected of 4 weaker banks or banks with less profit with the banks of higher profit / returns from few years. Is positive in creation of profit or avoiding great loss during pandemic, but pandemic has effect to increase in unemployment in some of the banking sectors in unorganised sectors