The one obvious reason why the Indian government, along with RBI, is clamoring to support various consolidation moves, is to prepare the banking industry in facing impending competition from foreign players post 2009. India needs world class banks in terms of assets, but the hard reality is that even after combining the profitability figures of the top ten Indian banks, one would still not be able to make it to the list of the global top 50 banks.
Source:- IIPM Editorial, 2006
