A period of mergers and acquisitions among Indian banks is expected after a recent $2.4 billion takeover ended a four-year drought. The Indian banking sector is highly fragmented, with 46 commercial banks competing with dozens of foreign banks and rural credit unions. On top of that, state-owned banks control 80% of the market. The New Delhi government and India’s Central Bank have recently eased regulations and increased the number of banking licences on offer. This is expected to encourage some of India’s industrial conglomerates to jump into the banking sector.
