PSB Consolidation

There is more money to be made in PSBs as RoA expansion has peaked for private banks, analysts said

Budget 2021 marks a clear change in the Modi government's stance from fiscal conservatism to growth orientation, notes analysts at Jefferies

Focus of banks to shift towards enhancing recoveries, risk management and improving their liability profile

Govt has been nudging state-owned lenders to merge, in order for stronger, fewer banks to exist

While taking a merger decision, financial performance needs to be considered

Number of PSBs may come down to 10-12 from the current 21, an official said