The advantage of being a differentiated bank is that its capital can be conserved and put to its best use. It can leverage its core strength, in a focussed manner. Conclusion 29. Let me conclude by saying that there is tremendous scope for consolidation among PSBs.
Consolidation will bring efficiency and synergy of operations and will ensure that Indian banking sector is capable of meeting credit demand of our growing economy. However, the consolidation needs to be a well-calibrated process based on sound economic logic.