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For the expanding Indian banking industry, consolidation in the banking sector is crucial in terms of mergers and acquisitions. Cost reduction and revenue growth are two ways to do this. Why do we need banking consolidation in India and what are the challenges that lie ahead are the key points here. The part that the The central government must be carefully considered throughout the process because it is essential to the development of the policies necessary for the expansion of Indian banking. Recently, it is observed that some M&A as voluntary efforts on the part of banks. The first of these consolidations after financial sector reforms were introduced in 1991 involved the merger of Times Bank and HDFC Bank. Banks have made voluntary attempts to consolidate and expand through the merger of Bank of Madura with ICICI Bank, the reverse merger of ICICI with ICICI Bank, the union of Centurion Bank and Bank of Punjab to become Centurion Bank of Punjab, and the recent choice of Lord Krishna Bank to unite with Federal Bank. Is it better for Indian banks to grow in size? Even the biggest Indian banks are considered minnows by international standards in a sector where scale matters and where boundaries between countries are vanishing. India is still an unbanked nation. The majority of the banking industry is undersized even by Indian standards: the top 25 banks, of which 18 are owned by the government, account for nearly 85% of banking assets. According to a study of the Indian banking sector, M & A is essential due to variables like stability, shareholder return, adherence to regulations, etc. Additionally, M & A offers these Indian institutions the chance to establish a universal bank. Additionally, mergers may be employed strategically.