New Delhi, Aug. 26 -- New Delhi: India should make efforts to consolidate banks in such a manner that a few big banks of equal size are created without compromising the competition, said the Economic Advisory Council to the Prime Minister (EAC-PM).

"Though the concentration in the Indian banking industry is low, the market share of the banks varies significantly, starting from 20% to below 1%," said the paper titled Reforms, Efficiency, and Productivity of Indian Banking Sector in the Last Decade: A DEA Approach, released on Tuesday night.

India's banking sector remains diverse despite consolidation among public sector banks (PSBs). As of March 2026, the country had 124 scheduled commercial banks. PSBs accounted for 53% of banking offic...