Axis Bank CEO Amitabh Chaudhry forecasted a wave of consolidation in India's banking sector, arguing the country needs 8 to 10 large banks to support economic growth. He made these remarks in an interview with Bloomberg TV's Haslinda Amin, suggesting the current fragmented landscape is insufficient for future development needs.

Chaudhry also addressed the Indian rupee's recent underperformance, attributing capital rotation to China and other markets. He cited a perception that India is lagging in AI development as a key driver of this shift. However, he expressed confidence that upcoming fiscal and regulatory reforms could provide stabilization for the currency.

His comments arrive amid ongoing discussions about India's financial system structure. Major state-owned lenders like SBI dominate, while private players such as HDFC and ICICI have grown significantly. A consolidation push could reshape competitive dynamics and potentially create stronger, systemically important institutions capable of funding large-scale infrastructure and technology projects.