Consolidation in banking sector through mergers and acquisitionsThe banking scenario since 1991 has been a process of transformation and consolidation. With the implementation of financial sector reforms, the microenvironment of the banking sector has undergone a drastic change. Almost all insulation from commercial banks has been removed and they are now vulnerable to all types of exposures. There has been a paradigm shift in operational, functional, environmental and technological areas. The reforms emphasized the “commercial character” of the banking system and helped banks put themselves on a solid footing. The first phase of reforms oriented mainly towards operational efficiency brought concepts such as prudential accounting standards, interest rate deregulation, credit provision, transparency, capital adequacy standards, management autonomy, etc. Banks began to clean up their balance sheets, competition led to an improvement in their efficiency and their concept of profit being recognized as a test of commercial viability. Transparency allowed them to realize their own strengths. In today's world, banking structures matter and size matters, no matter how beautiful. Consolidation is an inevitable process in the banking sector as banks seek to achieve economies of size. Mergers and acquisitions are considered helpful in achieving the required size in the short term. P. Lakshminarayan is currently the President of Indian Institute of Bankers, Nagpur Centre, Secretary of Indian Institute of Public Administration, Nagpur and Bankers' Club, Nagpur and also Vice President of All India Association of South, Nagpur. In addition to the above, he is an Associate Member of IndianInstitute of Bankes, Life Member of South Indian Education Society, Nagpur, Examiner for MA Final Examinations. from Nagpur University and for JAAIB/CAIIBExams. consulted by IIBFDr. Lakshminarayan has been with the Reserve Bank of India for over 41 years. He worked in almost all departments of RBI and retired as Director (PP) in Nagpur. He is a Visiting Professor of Department of Business Management, Nagpur University Academic Staff College, Nagpur University, Training Centers of All Public Sector Banks, IIM MBA Project Guide, Ahmedabad, Academy National Direct Taxes, Nagpur, Regional Telecom Training Centre, Nagpur. .He has published over 100 articles in leading journals including IBA Bulletin. He received the first prize in the National Essay Competition on the topic “Disaster Management” awarded by the Vice President of India and the second prize from the Reserve Bank of India for his article on “The Relevance of Nehruvian Planning in the current context. “Research on the banking crisis in 43 countries indicates that the cumulative loss of GNP could amount to around 15 to 20 percent.