psu banks Stocks Rally: Markets Hope for Bigger, Stronger Entities in Next Merger Phase

psu banks Public-sector bank stocks opened on a strong note after discussions around potential consolidation resurfaced in financial circles. SBI led the uptrend with notable intraday gains, followed by Bank of Baroda, Canara Bank, and Union Bank.
Experts believe the government’s focus on creating globally competitive Indian lenders could prompt a second wave of mergers similar to the 2019–20 consolidation drive. Improved digital capabilities, cost synergies, and better asset quality are among the anticipated advantages. Traders expect heightened activity in PSU counters in the coming sessions as merger-related expectations continue to build.