Govt Seeks Global Top 20 Rank, No Bank Mergers

The PSB Manthan 2025 conference in New Delhi aims to elevate at least two Indian public sector banks (PSBs) into the world's top 20 by assets, focusing on growth and governance without pursuing mergers

Currently, the State Bank of India is the only Indian PSB in the global top 50, ranked 47th, highlighting the need for significant scaling to achieve the ambitious global ranking goals

A key discussion point was the strategic use of artificial intelligence (AI) in banking, which is viewed as an investment for enhancing personalized services, predictive risk management, and operational efficiency

Strengthening corporate governance is critical, with a focus on restructuring board compositions to balance oversight and management autonomy, fostering innovation and accountability

Domestic growth remains a priority, with emphasis on boosting credit for agriculture and MSMEs to support rural development, job creation, and entrepreneurship

As global trade dynamics shift, PSBs are encouraged to expand internationally, exploring new opportunities in trade finance, cross-border payments, and global project financing

The government clarified that the agenda does not include PSB consolidation, instead prioritizing organic growth, technology adoption, and customer-focused innovation for sustainable development

The PSB Manthan 2025 aligns with the broader vision of Viksit Bharat 2047, aiming to transform Indian banks into globally competitive institutions through AI, governance reforms, and strategic growth

This initiative marks a significant shift in Indian banking reforms, moving away from structural mergers towards innovation and strategic growth to compete on a global scale

Overall, the conference sets the stage for Indian PSBs to become future-ready, globally competitive, and customer-centric, driving India's growth towards 2047 and beyond