Old private sector banks are actually up for a big transition. Diwanji pointed to banks such as South Indian Bank and Karnataka Bank as potential candidates over time. Several other bankers echoed this view, though many see South Indian Bank as the most likely near-term beneficiary. Emails sent to South Indian Bank, Karnataka Bank, Tamilnad Mercantile Bank, Karur Vysya Bank, and Federal Bank remained unanswered till press time. While South Indian Bank has already begun this process, others such as Karnataka Bank, Tamilnad Mercantile Bank and City Union Bank may need deeper reforms.

Source: Mint December 20, 2025 09:07 UTC