Empowering India: The Vision Behind Creating Two Globally Competitive Banks for a Prosperous Future

As part of its “Viksit Bharat 2047” goal to become a developed nation, India aims to launch two competitive public sector banks (PSBs) that rank among the world’s top 20 by assets. This vision was on the table during the recent PSB Manthan 2025 conference, organized by the Department of Financial Services.

Currently, only the State Bank of India (SBI) and HDFC Bank have made it into the global top 100, with SBI at 43rd and HDFC at 73rd. Achieving a place in the top 20 is essential.

At the conference, officials stressed that the plan doesn’t include merging banks; instead, the focus is on strengthening each bank individually and promoting organic growth. This approach highlights the commitment to elevating existing institutions rather than combining them into larger entities.

The meeting featured influential figures, including M Nagaraju, Secretary of the Department of Financial Services. Experts like Chief Economic Adviser V Anantha Nageswaran and RBI Deputy Governor Swaminathan J contributed to discussions about preparing PSBs for future growth. Notably, public sector banks saw a whopping 26% rise in net profits, reaching a record Rs 1.78 lakh crore for the fiscal year ending March 2025. SBI was a major contributor, accounting for 40% of these profits.

Punjab National Bank reported the highest percentage growth, with a 102% increase in net profit, reaching Rs 16,630 crore. Discussions were held on the potential for more autonomy within bank boards to enhance decision-making and efficiency.

The conversations at the PSB Manthan conference reflect a larger trend in the banking sector, where a push toward self-reliance and effective governance is crucial for competitiveness.

To stay updated on India’s banking developments, you can follow trusted sources like The Economic Times for the latest insights and trends.

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