India to target two PSBs in top 20 global banks as part Viksit Bharat 2047 plan

By Admin

13 Sep, 2025

India has set an ambitious target under its Viksit Bharat 2047 roadmap to elevate at least two Public Sector Banks (PSBs) into the list of the world’s top 20 banks by 2047. This vision was highlighted during the PSB Manthan 2025 conference in Delhi, where senior officials from the Department of Financial Services (DFS) emphasized scaling up the size, strength, and global competitiveness of Indian PSBs.

Current Status of Indian Banks Globally

As of now, only the State Bank of India (SBI) features in the list of the top 50 global banks, ranking 43rd by asset size. Despite India’s rapidly expanding economy and financial sector, the country does not yet have a single bank of truly global scale. Experts argue that for India, which is set to become the world’s third-largest economy, having globally competitive banks is critical to support trade, investment, and credit growth.

The Push Through Consolidation

India has already taken bold steps toward creating large, strong banks. In 2019, the government initiated a major consolidation drive, merging 10 public sector banks into four large entities to enhance scale and efficiency. Key mergers included:

• Punjab National Bank (PNB) becoming the second-largest bank in India after absorbing Oriental Bank of Commerce (OBC) and United Bank of India (UBI).
  
  

• Canara Bank merging with Syndicate Bank, becoming the fourth-largest lender.
  
  

• Union Bank of India combining with Andhra Bank and Corporation Bank, creating India’s fifth-largest PSB.
  
  

• Indian Bank merging with Allahabad Bank, forming the seventh-largest lender.
  
  

As a result, the number of PSBs has reduced from 27 in 2017 to 12 today, including seven large banks and five smaller ones.

Path Ahead: Growth Beyond Consolidation

According to DFS officials, while consolidation was crucial in building stronger PSBs, future growth will focus on organic expansion. This includes enhancing business size, leveraging advanced technology, and adopting global best practices in governance, customer experience, and risk management.

The PSB Manthan discussions emphasized several key themes:

• Scaling up PSBs to compete with global giants.
  
  

• Driving credit growth in agriculture and MSME sectors.
  
  

• Strengthening corporate governance and improving board compositions.
  
  

• Adopting technology-driven banking practices to match international standards.
  
  

Why Global-Scale Banks Matter for India

For a fast-growing economy like India, having globally competitive banks is not just a prestige issue it is a necessity. Large banks are essential to:

• Finance mega infrastructure projects.
  
  

• Support global trade and investments.
  
  

• Strengthen India’s financial resilience.
  
  

• Facilitate smoother integration with the international financial system.
  
  

Conclusion

The government’s vision to push at least two PSBs into the global top 20 by 2047 reflects the scale of India’s aspirations under the Viksit Bharat agenda. While the path will require sustained reforms, technology adoption, and customer-centric strategies, the foundation laid through consolidation offers a strong starting point. If executed effectively, India’s PSBs could become global leaders, playing a crucial role in the nation’s transformation into a developed economy by 2047.