India’s Ambitious Vision – Two Public Sector Banks Among World’s Top 20 by 2047

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13 Sep, 2025

India’s Ambitious Vision – Two Public Sector Banks Among World’s Top 20 by 2047

India’s Vision 2047: A Leap Towards Global Banking Leadership

India has set an ambitious goal: to position at least two of its public sector banks (PSBs) among the world’s top 20 by 2047. This vision aligns with the broader "Viksit Bharat" (Developed India) agenda, aiming to transform India into a global economic powerhouse. Currently, only the State Bank of India (SBI) and HDFC Bank are listed among the top 100 global lenders by assets.

Strategic Focus Areas

To achieve this ambitious goal, the Indian government and banking sector leaders are focusing on several key areas:

1. Corporate Governance and Autonomy

Enhancing the autonomy of PSBs is crucial for swift decision-making and adaptability in a dynamic global banking environment. Discussions at the PSB Manthan conclave emphasized the need for improved board governance and operational independence.

2. Digital Transformation and AI Integration

Leveraging artificial intelligence and digital technologies will be pivotal in modernizing banking operations, improving customer experiences, and enhancing efficiency. The adoption of AI can streamline processes, reduce costs, and offer personalized banking services (The Economic Times).

3. Cybersecurity and Risk Management

As digital banking expands, robust cybersecurity measures are essential to protect against evolving threats. Strengthening risk management frameworks will ensure the resilience of PSBs in the face of global uncertainties.

4. Financial Inclusion and MSME Support

Focusing on financial inclusion, especially in underserved sectors like agriculture and micro, small, and medium enterprises (MSMEs), will drive credit growth and economic development. PSBs are encouraged to enhance lending to these priority sectors.

Impact on the Indian Market

The transformation of PSBs to global competitiveness will have several positive effects on the Indian market:

Enhanced Investor Confidence: A robust banking sector will attract both domestic and international investors, boosting capital inflows.

Increased Credit Availability: With improved financial health, PSBs can offer more credit to businesses and consumers, stimulating economic growth.

Technological Advancements: The integration of AI and digital tools will lead to innovation in financial products and services, benefiting consumers and businesses alike.

Job Creation and Skill Development: The modernization of PSBs will create new job opportunities and necessitate skill development, contributing to employment growth.

India's vision to have two public sector banks among the world's top 20 by 2047 is a testament to its commitment to economic growth and global competitiveness. By focusing on governance, digital transformation, cybersecurity, and financial inclusion, India is paving the way for a robust and inclusive banking sector that can drive its journey towards becoming a developed nation.

By Nehal Taparia

This content is for educational and knowledge purposes only and should not be considered as investment or Trading advice. Please consult a certified financial advisor before making any investment or Trading decisions.

Our Recent FAQS

Frequently Asked Question &
Answers Here

Q1: Which banks are currently among the top 100 global lenders by assets?

As of now, the State Bank of India (SBI) and HDFC Bank are the only Indian banks listed among the top 100 global lenders by assets

Q2: What is the PSB Manthan conclave?

The PSB Manthan conclave is a platform where government officials and banking sector leaders discuss strategies to enhance the performance and global competitiveness of public sector banks.

Q3: How will AI benefit public sector banks?

Artificial intelligence can help PSBs in automating processes, detecting fraud, personalizing customer services, and improving decision-making, leading to increased efficiency and customer satisfaction.

Q4: What is the significance of financial inclusion in this vision?

Financial inclusion ensures that all segments of society have access to banking services, which is essential for equitable economic growth and achieving the Viksit Bharat goal.

Q5: How will this initiative affect the Indian economy?

The modernization and global competitiveness of PSBs will lead to a more resilient banking sector, increased economic activities, and enhanced India's position in the global economic landscape.