Government Targets Global Top 20 Ranking for Two Public Sector Banks Under Viksit Bharat 2047
At present, only the State Bank of India figures among the world’s top 50 banks, holding the 43rd spot in terms of asset size. Under the government’s Viksit Bharat 2047 vision, the goal is to bring at least two Indian public sector banks into the top 20 global rankings.
The roadmap for this ambition is expected to take shape at the upcoming PSB Manthan 2025, where strategies will be discussed to expand business, strengthen financial operations, and adopt cutting-edge technology. According to senior officials from the Department of Financial Services, achieving such scale would require not only organic growth but also integration of advanced banking practices that have defined leading international players. Since discussions are ongoing, a more detailed plan will emerge after deliberations are completed.
The push for stronger banks is not new. In 2019, the government initiated a major consolidation exercise, merging 10 public sector banks into four large entities. By 2020, this restructuring saw Oriental Bank of Commerce and United Bank of India combined with Punjab National Bank, making it the country’s second-largest lender. Canara Bank merged with Syndicate Bank to become the fourth largest, while Union Bank of India, Andhra Bank, and Corporation Bank were brought together to form the fifth largest. Allahabad Bank was also integrated with Indian Bank, creating the seventh largest public sector bank.
Following these mergers, India currently has seven large public sector banks and five smaller ones, a sharp reduction from the 27 that existed in 2017. The consolidation has paved the way for stronger financial institutions, which the government now hopes to position on the global stage as part of its long-term growth strategy.