FinMin for creation of two globally competitive banks as part of Viksit Bharat vision

Core Insights - India aims to establish two globally competitive banks that rank among the top 20 lenders in the world as part of its 'Viksit Bharat 2047' vision [11] - The discussions during the PSB Manthan 2025 focused on enhancing the scale and size of public sector banks (PSBs) to achieve this goal [11] Financial Performance - The cumulative profit of public sector banks reached a record level of Rs 1.78 lakh crore in FY25, marking a 26% increase from the previous year [5][11] - In FY24, all 12 public sector banks collectively earned a profit of Rs 1.41 lakh crore, with an increase of approximately Rs 37,100 crore in FY25 [5][11] - State Bank of India (SBI) contributed over 40% of the total earnings in FY25, with a net profit of Rs 70,901 crore, a 16% increase from Rs 61,077 crore in the previous fiscal [6][11] - Punjab National Bank reported the highest net profit growth of 102% to Rs 16,630 crore, followed by Punjab & Sind Bank with a 71% rise to Rs 1,016 crore [6][11] Strategic Discussions - The meeting emphasized improving the autonomy of banks' boards to enhance efficiency in commercial decision-making [7][11] - Diversifying operations to gain expertise in other banking segments was discussed as a means for PSU banks to become globally relevant [8][11] - Challenges related to information technology, cyber-security, customer service, and grievance handling were also addressed [8][11] Historical Context - The PSB Manthan event is a continuation of previous initiatives, with the last one held in April 2022 focusing on Enhanced Access & Service Excellence (EASE) reforms [9][11]