Efficient Move: Must not choke credit flow

The consolidation will help banks reduce expenses, as there was replication of services and infrastructure. Very often one finds two or three different banks with branches and ATMs next to each other, servicing the same clients. It can also help them explore new geographies. The amalgamation process may choke management bandwidth, which should not result in slowdown in credit flow to the economy. 

—Anil Gupta, VP, Financial Sector Ratings, ICRA Ltd