EAC moots consolidation to create a few large banks
New Delhi: India needs to consolidate banks into a few large ones of comparable size, without harming competition, to meet rising credit needs to achieve Viksit Bharat by 2047, suggested a paper by the Economic Advisory Council to the prime minister (EAC-PM).
Though the concentration in the banking industry is low, the market share of the banks varies significantly, starting from 20% to below 1%, the paper pointed out. "In this context, India should make efforts to consolidate the banks in such a manner that a few big banks of equal size would be created, without compromising market competition in the industry," it said.
Though the concentration in the banking industry is low, the market share of the banks varies significantly, starting from 20% to below 1%, the paper pointed out. "In this context, India should make efforts to consolidate the banks in such a manner that a few big banks of equal size would be created, without compromising market competition in the industry," it said.
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