MUMBAI, June 14 (Reuters) - The time isn't ripe for Indian bank consolidation and a more important goal is inclusion of more of the public as a majority lack banking access, a newspaper said on Sunday, citing a central bank designated deputy governor.
More than 60 percent of the public do not have banking access and 80 percent do not avail themselves of credit from banks in India -- the world's second most populous country -- Kamalesh Chandra Chakrabarty was cited by the Business Line as saying.
His comments came barely days after finance minister Pranab Mukherjee said state-run banks should seriously consider mergers to be more competitive and reduce financial risks. [ID:nBMA003114]
"Financial inclusion is more important than consolidation. First bring financial inclusion (and) after three-four years we can talk of consolidation," the paper quoted him as saying.
Policymakers through their views on bank consolidation were only trying to create an awareness about its importance, Chakrabarty said in the paper. (Reporting by Narayanan Somasundaram; Editing by Jerry Norton)