Why so many banks

Banking is an essential service. The principles /policies of these bank must be unanimous , common to all the banks. the guidelines prescribed by the Govt/regulator is also common. Then why so many bank in different banners to extend the same type of services under same prescribed guidelines. Each bank competing each other overriding one another in extending services nothing more than the other competitor. How much money is being wasted in maintaining different brand name. Say for example only ATM is capable of handling the operations of ten ATMs set up by ten different banks under the banner of each bank in the same locality. So also number of branches clustered in same locality by different banks. What the cost of different administrative set up of different banks?
Instead why not merge all the nationalized banks into one Banking Corporation of India to operate all over the country. Is LIC of India is not working successfully.
Further each bank is having separate unions for officers and clerical staff. In the name of union a big chunk of employees both in clerical and officers are not doing any banking operations and treading like parasites on each bank. This can be reduced by the merger.
Moreover by dispensing entire cash operations all over the country and insisting of routing through bank accounts the time and energy being spent on cash management in banks can be reduced and it can be used in strengthening the economy.
Maintaining single banking corporation will save heavily on the advertisement now being issued by each different bank. So also good amount saving can be ensured in common stationary.
Though this proposal is being opposed by the unions it necessary to make them realise by educating them properly for a time bound implementation .