The merger is expected to benefit from an investment boost that has come after Indian companies deleveraged, banks rehabilitated a mountain of bad loans and a new bankruptcy mechanism freed capital from zombie companies. This was the policy intention behind raising the regulatory bar for shadow banks, which bore an unusually large responsibility for financing India’s infrastructure because banks were unable to do so due to lending rules. Banking in India is in consolidation. Nothing says it more clearly than this fusion.
https://economictimes.indiatimes.com/opinion/et-view/et-view-hdfc-merger-spells-consolidation-in-indias-private-banking-space/articleshow/90639186.cms hdfc: ET View: HDFC merger means consolidation in Indian private banking sector