India does not need too many govt banks; consolidation the right move

State-run banks will reduce in number but get healthier to stand up to competition from global banks

After the merger of SBI and its subsidiaries (which seems to be moving smoothly as of now), the Finance Ministry is actively considering more consolidation in the banking space. Apparently, NITI Aayog is working on a road map for further consolidation of public sector banks (PSBs), by studying their synergies, issues such as financial health, NPAs, geographical outreach, regional balance, HR transition, systems’ compatibilities and other aspects.
 
India does not need so many PSBs. Though this move to consolidate state-run banks will reduce their numbers, it will also make them healthier. This, in turn, will help them stand up