1. How are bank mergers going to change the banking scenario in India?
Bank mergers, especially in the PSU bank space have become a necessity, rather than a “want”. As the banking sector consolidates, we would eventually end up with large-scale players, which will heighten the ability for the banking system to absorb external/internal shocks as well as compete effectively. With mergers, it also provides opportunities for banks to tighten governance and to implement cost efficiency measures to a certain extent, that is, rationalise corporate structure/costs. Even though complexity of the organisation grows with scale, it also becomes easier for banks to invest in critical elements like technology, which will lead to greater efficiencies.