India Aims To Have At Least Two Public Sector Banks To Join Global Banking Elite By 2047: Report | Business News

State Bank of India, India’s largest public sector bank, is ranked 43rd globally on asset size. (File Photo)

India has set an ambitious target of having at least two public sector banks break into the world’s top 20 banks by asset size as part of the country’s strategic vision for a Viksit Bharat by 2047, according to a report by CNBC-TV18.

A high-level meeting is underway in Delhi between senior Indian bankers and officials from the Department of Financial Services (DFS), with discussions centred on shaping the future growth path of India’s banking sector.

As of now, India’s largest public sector bank, the State Bank of India (SBI), is ranked 43rd globally by asset size. Closing the gap to the top 20 is a significant challenge, but sources confided to CNBC-TV18 that the government is confident that the milestone can be achieved with strategic reforms and international expansion.

Furthermore, India’s bold target of having two public sector banks among the global banking elite reflects the government’s ambition to not only reinforce the domestic financial sector but also enhance India’s standing in the global banking arena.

The push comes against the backdrop of growing global economic uncertainty, with geopolitical tensions and volatile markets bringing the spotlight on Indian banks as essential tools to expand India’s presence in emerging international markets, support cross-border business, and safeguard the economy against external shocks.

Artificial Intelligence (AI) is playing a key role in India’s banking strategy, with the government banking on its role in driving organic growth for banks and helping them enhance customer experience, strengthen risk management, boost operational efficiency, and access underserved customer segments, the sources said.

Moreover, regulatory reforms are reportedly being considered to simplify procedures and remove outdated obstacles that hinder public sector banks from expanding globally, as per CNBC-TV18. These reforms aim to enhance competitiveness, foster innovation, and support quicker decision-making in line with international best practices.