Bank consolidation may resume by fiscal-end

PRASANTA SAHU New Delhi, October 5 AFTER A GAP of six years, the process of consolidation of public sector banks (PSBs) may restart by the end of the current financial year.

- 

What is being considered is the merger of 3-4 smaller PSBs with larger ones in the first phase. In the subsequent phase, which will be implemented over the medium term, some of the resultant combined entities may be merged among themselves, official sources told FE.

The move will reflect a plan to create two PSBs large enough to be among the top 20 global banks, in consonance with India's rising stature in the global economic landscape.

The PSB consolidation plan is also in line with the new public sector enterprises (PSE) policy unveiled in 2021 that aims to minimise the government's presence in strategic sectors, including banking.

"Some action will be visible in the current financial year on the PSB consolidation front," an official said on con dition of anonymity.