India’s ambition to create at least two globally competitive banks among the world’s top 20 aligns with its broader developmental goals. The “Viksit Bharat 2047” roadmap envisions an economy capable of financing its own transformation. For this, financial institutions must be able to handle the scale of lending needed for green energy corridors, smart cities, and next-generation manufacturing.The rationale for consolidationIndia’s banking landscape has long been characterised by fragmentation, with a multi ...

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]

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]

Let's not begin with what we are but what we could have been. Imagine India of 1947 we have just got independence. What could have happened if we could have adopted not the clerical you know job creation uh education system for the British Empire but rather an opportunity for education uh you know ecosystem where we cultivated creators risktakers and nation builders.What if our classrooms were not about silence and obedience but about dialogue, discovery and dissent. Right. What if we instead of rewarding m ...