NextFin news, On Friday, September 12, 2025, in New Delhi, the Indian government unveiled an ambitious plan to position two public sector banks (PSBs) among the top 20 global banks by the year 2047. This initiative aligns with India’s broader vision of becoming a developed nation by its centenary of independence.
The State Bank of India (SBI), currently ranked 43rd globally by assets, leads the country’s public banking sector. The government aims to elevate SBI and at least one other state-owned bank into the top 20 through a series of reforms and strategic initiatives.
The Department of Financial Services under the Ministry of Finance has launched “Manthan 2025,” a two-day brainstorming session involving managing directors and senior officials of all public sector banks. The discussions focus on charting a roadmap for reforms that will enhance the banks’ global competitiveness.
Key elements of the plan include strengthening capital bases, expanding digital infrastructure, improving risk management, and enhancing customer service standards. Banks are directed to analyze customer feedback to address dissatisfaction and implement uniform service protocols across the sector.
Additionally, the government emphasizes increasing credit flow to micro, small, and medium enterprises (MSMEs) and the agriculture sector, which are vital to India’s economic growth and employment generation.
The strategy also contemplates branch rationalization and consolidation to improve operational efficiency while maintaining financial inclusion, ensuring rural and underserved areas continue to receive banking services.
Officials highlighted that achieving this goal will require sustained policy support, market adaptability, and possibly mergers or strategic partnerships to build scale and global presence.
This announcement marks the third such government-led initiative to reform the banking sector, following previous efforts focused on digital transformation and risk management improvements.
The government’s vision reflects India’s economic aspirations and the evolving role of state-owned banks in meeting the country’s changing financial needs as it transitions toward developed-nation status.
Sources for this report include The Hindu BusinessLine, Times Now, The Times of India, DelhiBreakings.com, The Indian Express, and The Economic Times, all reporting on developments as of Friday, September 12, and Saturday, September 13, 2025.
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