India needs big, world-class banks: Nirmala Sitharaman

By Admin

07 Nov, 2025

In a significant statement that underscores India’s long-term financial vision, Finance Minister Nirmala Sitharaman said the country needs big, world-class banks to meet the growing demands of a fast-evolving economy. Speaking at the 12th SBI Banking and Economics Conclave in Mumbai on Thursday (November 6, 2025), the Finance Minister highlighted the importance of building robust financial institutions capable of supporting India’s growth trajectory towards Viksit Bharat 2047.

Strengthening India’s Banking Landscape

Sitharaman revealed that discussions are already underway with the Reserve Bank of India (RBI) and several other banks to explore the roadmap for developing larger, globally competitive banks. “The government is looking at this and work has already commenced. We are discussing with the RBI. We are discussing with banks,” she said, emphasizing the collaborative approach between policymakers and the financial sector.

Promoting System-Driven Lending

Highlighting the lessons learned from past financial challenges, the Finance Minister urged lenders to adhere to system-driven lending practices. She stressed that maintaining financial discipline is crucial to safeguarding the stability of India’s banking system. “We have many self-reliant practices which need to be followed,” Sitharaman said, reinforcing the idea that prudent financial management is the foundation for sustainable growth.

Financial Inclusion as a Pillar of Viksit Bharat

Sitharaman praised the ongoing efforts of banks and financial institutions in promoting financial inclusion, calling it one of the key pillars of achieving a developed India by 2047. By ensuring that banking services reach every corner of the country, India is empowering citizens, encouraging entrepreneurship, and fostering equitable growth.

Boosting Investment Through Credit Flow

The Finance Minister also urged banks to deepen and widen credit flow to industries, particularly small and medium enterprises (SMEs), which are the backbone of India’s economy. She expressed confidence that the GST rate cut-driven demand will trigger a virtuous investment cycle, creating a positive ripple effect across sectors.

Infrastructure: A Core Focus of Growth

Reiterating the government’s commitment to economic development, Sitharaman highlighted that infrastructure creation remains a central focus. She noted that capital expenditure has increased fivefold in the last decade, reflecting the government’s dedication to building a strong foundation for industrial and social progress.

Building the Future of Indian Banking

As India strives to position itself as a global economic powerhouse, the call for big, world-class banks marks an important step towards aligning the financial ecosystem with global standards. With the combined efforts of the government, RBI, and banking institutions, India aims to create a resilient, transparent, and future-ready banking system that supports its ambitious vision for 2047.