Our Bureau
New Delhi
This Friday, on September 12th, news has come out stating that India is looking to boost at least two of its Public Sector Banks (PSBs) in global league. A senior government official from the financial services department reported that through their Viksit Bharat road map the country is looking at least two public sector banks to become one of the top 20 banks in the world by 2047.
As per the senior official, the scaling up of the size of public sector banks was at the top of the agenda list for the two-day PSB Manthan 2025. He stated that as of now only State Bank of India (SBI) is the only bank that is in the list of top 50 global banks, ranking at 43rd place in asset size. Through the PSB Manthan 2025, the plans will be made for the scale up while keeping in mind several global foreign banking operations.
“We currently only have State Bank of India, which ranks 43rd in asset size, in the list of top 50 global banks. The Viksit Bharat road map that has been finalised by the government aspires to take at least two PSBs into the top 20 global banks. The PSB Manthan will discuss and carve the road map for this scaling up that will require both growth in business and acquisition and adoption of advanced technical expertise that has become the hallmark of several global foreign banking operations,” the DFS officials said.
Six years back, in 2019, the government started creating large banks in the country as it took a decision of merging several public sector banks to scale them up and they decided to merge at least 10 public sector banks to create four large banks.
In 2020, Oriental Bank of Commerce (OBC) and United Bank of India (UBI) were merged with Punjab National Bank (PNB) to create the second-largest bank in India. Canara Bank and Syndicate Bank became the fourth largest lender, while Union Bank of India, Andhra Bank and Corporation Bank’s merger created the fifth largest PSB in India. Also, Allahabad Bank was merged with Indian Bank to create the seventh-largest bank.
