Shares of State Bank of India (SBI) and several public-sector lenders traded higher today as renewed speculation around another round of bank consolidation picked up steam. Market chatter indicates that the government may be evaluating fresh proposals to merge mid-sized PSU banks to strengthen balance sheets and improve operational efficiency.
Investors reacted positively, anticipating stronger capital positions, reduced NPAs, and improved scalability if mergers materialize. Analysts, however, noted that no official roadmap has been released yet, urging caution until concrete announcements are made. The banking index also saw a sharp uptick, signalling broader sectoral comfort around consolidation-led efficiency gains.
SBI, Other PSU Banks Gain as Fresh Merger Buzz Sparks Market Optimism
