Banking Sector Reforms Committee in 1998 itself suggested consolidation of banks –the SBI and Associates into a big state-owned bank and five or six such big banks through consolidation of other PSBs, mergers of private banks and even FIs with NBFCs. There were noises of consolidation in the UPA-1 government too. And now, the Working Group on mergers and acquisitions set up by the Union Ministry of Finance again called for a similar action. The major issues relating to capital, assets and human resources need to be looked at from the points of view of growth, financial stability and global experiences. Chairman SBI Arundhati Bhattacharya recently strongly fielded the arguments for large scale consolidation. Is the Indian financial system ripe for the call?