Finance Ministry weighs options for consolidation in banking sector
The presentation talked about advantages and challenges of merger but it also highlighted that fragmented approach of the banks is acting as an impediment in their growth. Various permutation and combinations are being examined, sources said, but added that no decision has been taken yet.
The ministry wants banks to undertake an internal exercise for the best match and come up with the merger idea for the alternative mechanism (AM) set up for the purpose. Image source: Reuters