Bank mergers can substantially alter the way customer’s access and experience banking services, particularly through changes in service procedures, continuity of operations, communication practices, technology-enabled services, and customer support. This study examines customers’ perceptions and challenges associated with commercial banks following mergers in Coimbatore City. A quantitative empirical research design was adopted, and primary data were obtained from 160 customers through a structured questionnaire based on a five-point Likert scale. The study examined five major constructs: Customer Perception, Service Continuity, Merger Challenges, Merger Awareness, and Customer Satisfaction. The collected data were analysed using frequency and percentage analysis, descriptive statistics, Cronbach’s alpha reliability testing, Kaiser–Meyer–Olkin and Bartlett’s tests, exploratory factor analysis, Pearson correlation, multiple regression, independent-samples t-tests, and one-way ANOVA. The findings indicate that respondents reported a generally favourable perception of postmerger banking services, while merger awareness was relatively high. The measurement scales demonstrated satisfactory internal consistency, and exploratory factor analysis supported a distinct five-factor structure. Customer Perception and Service Continuity were positively associated with Customer Satisfaction, whereas Merger Challenges showed a significant negative association. Multiple regression revealed that the four explanatory variables jointly accounted for 41.2% of the variation in Customer Satisfaction, with Merger Challenges emerging as the strongest negative predictor. Merger Awareness did not have a significant independent effect on satisfaction. The group-comparison results further indicated significant differences in customer satisfaction according to gender, age, and monthly income, while bank type, education, occupation, and duration of banking relationship did not show significant differences. The study highlights the importance of maintaining service continuity, reducing transition-related difficulties, and strengthening customer-oriented communication during postmerger integration. The findings provide useful evidence for commercial banks seeking to improve customer experience and satisfaction following organisational consolidation.