India plans to merge 12 public sector banks into 4
Big changes are reportedly being considered for India's public banks: the government is reportedly considering a plan to merge 12 state-run banks into four major ones in the near future.
The main players will be SBI, PNB, Bank of Baroda, and a combined Canara-Union Bank, with Indian Bank and UCO Bank also being considered for integration, though the final structure is yet to be decided.
Why should you care?
This move could make banking smoother and more efficient—think fewer branches doing the same thing and stronger banks ready to lend for big projects.
It also helps public banks compete better with private ones as credit demand grows.
Past mergers have already cut the number of PSBs from 27 to 12 since 2017, and now another big round could see consolidation gain momentum in the coming year (i.e., in 2026) if it gets the green light from top officials.
Public sector banks still hold a huge chunk of the market, so these changes might impact everything from your local branch to how easily businesses can get loans.