More Indian lenders to appear in top 100 global banks list soon: RBI Guv Sanjay Malhotra

Core Viewpoint - The Reserve Bank of India (RBI) Governor Sanjay Malhotra expressed optimism that India will soon have more domestic banks in the top 100 global banks list due to the rapid growth of both public and private sector banks [8][9]. Group 1: Banking Sector Growth - The cumulative profit of public sector banks reached a record level of ₹1.78 lakh crore for the fiscal year ending March 2025, marking a growth of 26% compared to the previous year [2][9]. - Currently, only two Indian banks, State Bank of India (SBI) and HDFC Bank, are ranked among the world's top 100 banks, positioned at 43rd and 73rd respectively [8][9]. Group 2: Government Initiatives - The Indian government has previously undertaken two rounds of consolidation in the banking sector, reducing the number of public sector banks from 27 in 2017 to 12 by August 2019 through major mergers [7][9]. - As part of its privatization efforts, the government sold a controlling 51% stake in IDBI Bank to Life Insurance Corporation (LIC) in January 2019, and plans for further strategic sales are underway [7][9]. Group 3: Future Prospects - Finance Minister Nirmala Sitharaman emphasized the need for larger, world-class banks and indicated that discussions with the RBI and lenders are ongoing to create a conducive environment for bank growth [6][9]. - The government is working on establishing a more dynamic ecosystem for banks to operate and grow, which is seen as essential for achieving the goal of having more banks in the global top 100 [6][9].