India to Create Two Globally Competitive Banks as part of Viksit Bharat vision

As part of its 'Viksit Bharat 2047' ambition to become a developed nation, India wants to build two globally competitive banks with assets that would place them among the top 20 lenders in the world. During the first day of the two-day PSB Manthan 2025, which was organized by the Department of Financial Services, the topic of globally competitive banks was discussed.

The Indian government's "Viksit Bharat" (Developed India) goal for 2047 calls for at least two Indian public sector banks (PSBs) to be among the top 20 banks globally in terms of assets. At the moment, only State Bank of India (SBI) and HDFC Bank are in the top 100, with SBI ranking 43rd and HDFC at 73rd. This makes this a crucial goal.

At the PSB Manthan 2025 conference, a major focus was the plan for achieving this objective. Further bank mergers or consolidations are not part of the current strategy, the administration has made plain. The emphasis is instead on individual bank strengthening and organic expansion.

In terms of assets, State Bank of India (SBI), the biggest lender in the nation, is now ranked 43rd in the world, while HDFC Bank, a private sector lender, is the second Indian bank to rank among the top 100 largest banks, coming in at number 73. The scale and magnitude must be met as part of the Viksit Bharat journey, the official continued, adding that India needs its two banks to be on the top 20 list.

The Department of Financial Services (DFS) Secretary M Nagaraju presided over the meeting, which was attended by several senior ministry representatives and prominent public sector bank executives, such as Ashok Chandra, CEO of Punjab National Bank, and CS Setty, chairman of the State Bank of India.

The first day's speakers included Chief Economic Adviser V Anantha Nageswaran, RBI Deputy Governor Swaminathan J, former DFS Secretary and former IRDAI Chairman Debasish Panda, MDI Gurgaon director Arvind Sahay, and other public sector bank MDs, CEOs, and top management.

In light of the objective of "Viksit Bharat" by 2047, there were talks about preparing PSBs for the upcoming stage of expansion. In the context of the most recent PSB Manthan round, PSU banks' cumulative profit increased by 26% to a record level of Rs 1.78 lakh crore in the fiscal year that ended in March 2025.

The market leader, State Bank of India (SBI), provided more than 40% of the total earnings of the Rs 1,78,364 crore profit made in FY25. In FY25, SBI recorded a net profit of Rs 70,901 crore, which was 16% more than the Rs 61,077 crore it made in the previous fiscal year.

The largest net profit growth, measured in percentage terms, was reported by Delhi-based Punjab National Bank, which increased by 102% to Rs 16,630 crore. Punjab & Sind Bank, on the other hand, increased by 71% to Rs 1,016 crore. The official added that discussions were underway to increase the independence of bank boards in order to make business choices more effectively.

A wide range of other banking-related subjects were covered during the conference, including the impact of the government's recent reform initiatives.

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