Global ambition: India aims to place two PSBs among top 20 banks; ‘Viksit Bharat 2047’ drives long-term vision

Group 1 - The Indian government aims to develop at least two public sector banks (PSBs) that rank among the top 20 global lenders by assets as part of its 'Viksit Bharat 2047' vision [4] - Currently, only State Bank of India (SBI) and HDFC Bank are in the top 100 global banks, ranked 43rd and 73rd respectively [4] - The financial performance of the 12 PSBs has improved significantly, with a cumulative net profit of Rs 1.78 lakh crore in FY25, a 26% increase from the previous year, and SBI contributing over 40% of this profit [4] Group 2 - Key discussions at the PSB conclave included strengthening corporate governance, enhancing customer experience, improving risk management, and utilizing artificial intelligence for modernization [4] - Gross non-performing assets (NPAs) have decreased to 2.58% as of March 2025, down from 9.11% in 2021 [4] - The conclave also focused on priority sector lending, particularly to agriculture and MSMEs, with non-food credit growth easing to 9.9% year-on-year in July 2025 [4] Group 3 - Discussions emphasized improving the CASA ratio, diversifying operations, and strengthening risk management to better absorb economic shocks [3] - Participants included key figures from the Department of Financial Services, SBI, Punjab National Bank, and the Reserve Bank of India [3] - The government underscored the importance of organic growth and operational autonomy for banks to achieve global scale, aiming for a significant international role by 2047 [3]