The consolidation of Public Sector Banks (PSBs) in India, especially in the context of the recent mega-merger reforms undertaken in 2020, is a critical policy initiative with a focus on enhancing the efficiency of the banking sector, strengthening the stability of the overall financial system, and increasing global competitiveness. The significance of this study lies in the evaluation of whether the structural reforms have been successful in achieving the desired results with regard to the overall performance of the banking sector. Although there is a recent surge in literature on the issue of bank mergers, there is a huge gap in terms of conducting a comprehensive post-consolidation evaluation with regard to efficiency, competition, and stability using recent data. Therefore, the primary objective of this study is to conduct a comprehensive empirical evaluation of the recent PSB consolidations. The study is based on a sample of 12 Public Sector Banks (PSBs) in India, which have survived the consolidation phase initiated in the year 2020. These banks include large banks such as the State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, etc. The period considered for the research is from 2015 to 2024, which includes both pre- and post-merger phases. The research is based on secondary data collected from annual reports, RBI publications, financial data, etc. It is based on panel data regression, efficiency indicators, etc. The research highlights that the consolidation process has resulted in improved efficiency, both at the operating and financial level, in the long term, improved capital position, and increased resilience of the financial system, though it is still associated with short-term integration issues, concerns over reduced competition, and increased systemic risk. The research suggests that consolidation is the right step, but it is necessary to strengthen the system further by improving the efficiency, risk management, and regulatory oversight to maintain the balance.