Narasimham Committee Report in 1991 (NC-I), recommended a three tier banking structure in India through establishment of three large banks with international presence, eight to ten national banks and a large number of regional and local banks. Narasimham Committee Report in 1998 (NC-II) also reiterated the recommendations on NC-I.
Recently, in the budget speech for 2016–17, Finance Minister mentioned that a roadmap for consolidation of PSBs would be spelt out. The desirability of consolidation in Indian banking sector is widely felt across the spectrum. Current Imperatives 3. There are at present times several congruent factors that indicate that consolidation in Indian banking scene has its right time. They are as follows: 4.