Whispers suggest a new round of PSB consolidations in 2026, potentially reducing the 12 PSBs to 4-6 global-scale banks (e.g., led by SBI, PNB, Bank of Baroda, Canara Bank). This includes merging smaller ones like Bank of India, Indian Overseas Bank, Central Bank of India, and Bank of Maharashtra. The government aims for “world-class” banks to support Viksit Bharat by 2047, with discussions involving RBI and PSBs. Speculation intensified around Budget 2026, with predictions of multi-phase mergers starting FY26-27. This could drive stock rallies but faces union opposition.