Although further consolidation among Public Sector Banks (PSBs) was reportedly discussed at the recent ‘Manthan –bankers’ conclave 2025’, the official stance remains a “no immediate mergers” policy. The focus is on pursuing organic growth, governance improvements, and technology upgrades for the next phase of banking reform. It is crucial to make banks future-ready, adapt to market and technological changes, and help achieve the Viksit Bharat 2047 vision, rather than pushing for additional consolidation in the short term.

Despite these views, reports are widespread about a potential next round of consolidation in the PSBs. The current plan being discussed involves merging smaller PSBs like Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra with larger PSBs

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