Mergers within commercial banks should be focused and strategic: RBI deputy governor

Mumbai: RBI supports mergers among commercial lenders but they have to be focused and strategic, Deputy Governor of RBI S S Mundra said on Monday.[caption id="attachment_2544460" align="alignleft" width="380"] Reuters[/caption]S S Mundra, speaking at a business school in Mumbai, warned that merging a weak bank with a strong bank might weaken the stronger lender."I would believe merger for the sake of merger really would not serve the intended purpose," he said.India has more than two dozen state-run banks which dominate its banking landscape. The government has said it will not force consolidation, but several weaker banks are expected to merge with rivals.Reuters