India is aiming to have two of its Public Sector Banks (PSBs) ranked among the top 20 global banks by 2047 as part of its "Viksit Bharat" vision. This initiative was a key topic of discussion at the PSB Manthan 2025 event organized by the Department of Financial Services. Currently, State Bank of India (SBI) holds the 43rd position globally in terms of assets, while HDFC Bank is ranked 73rd. The focus is on organically elevating at least two Indian banks into the top 20.
The PSB Manthan 2025 meeting, chaired by M Nagaraju, Secretary of the Department of Financial Services, included senior ministry officials and top executives from PSBs, such as SBI Chairman CS Setty and Punjab National Bank CEO Ashok Chandra. Chief Economic Adviser V Anantha Nageswaran and RBI Deputy Governor Swaminathan J also addressed the gathering. Discussions centered on preparing PSBs for future growth in line with the Viksit Bharat 2047 goal.
The push for this initiative comes against the backdrop of the record ₹1.78 lakh crore profit achieved by PSBs in FY25, a 26% increase from the previous year. SBI contributed over 40% of these earnings with a net profit of ₹70,901 crore, a 16% increase from the previous fiscal year. Punjab National Bank saw the highest percentage growth in net profit at 102%, reaching ₹16,630 crore.
The government is encouraging PSBs to expand their international presence, as global trade routes and capital flows are being reshaped. New opportunities in trade finance, cross-border payments, and global project financing are expected to help Indian banks achieve the scale needed to enter the global top 20.
During the meeting, there was also discussion on enhancing the autonomy of bank boards. Strengthening corporate governance, improving customer experience, and promoting modernization through the use of artificial intelligence are key issues being deliberated. Other important topics on the agenda included cybersecurity, workforce transformation, risk management, and personalized banking. The aim is to prepare PSBs for the future and scale them up organically while increasing resilience.
The government has clarified that consolidation is not part of the PSB Manthan 2025 agenda. Unlike earlier reform phases that focused on mergers, this roadmap prioritizes organic growth, technology adoption, customer-first innovation, and global competitiveness. The emphasis is on strengthening PSBs individually as a sustainable path to growth and resilience. By combining AI adoption, governance reforms, customer experience, and global expansion, India aims to position its PSBs as world leaders.
