The consolidation of India’s Public Sector Banks (PSBs) is once again on the policy radar, with speculation about a second round of mergers that could reduce their number from the current 12 to perhaps half that figure.
The government’s stated aim is to create stronger, globally competitive banks capable of supporting India’s $5-trillion economy.
While size and scale undoubtedly matter in the global financial order, the real strength of a bank ultimately lies in its people. Employee morale, motivation, and cultural integration are as vital as capital adequacy and technology upgrades in ensuring that merged entities truly succeed.
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HISTORY OF MERGERS
India’s tryst with PSB consolidation dates back more than three decades. The first post-nationalisation merger took place in 1993, when Punjab National Bank (PNB) absorbed th
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