............The State Bank of India and its associates may justify a call for amalgamation of the associates with the parent because of overlap. But can that logic be extended to public sector banks in general forcing the merger of smaller ones with the big to create a bigger entity? Reserve Bank of India governor Raghuram Rajan plans to give bank licences on tap. There is a plan to have differentiated bank licences which will help take financial services to nearly two-thirds of the population which does not have access to it. But the government is, in principle, comfortable with merging some staterun banks, though it has not spelt out how it plans to go about it. Is it not a contradictory argument by the two most powerful arms of administration for more banks to achieve financial inclusion and, at the same time, talk about a reduction in the number of banks?...........
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