Mumbai: Finance Minister Nirmala Sitharaman addresses the gathering during the 12th SBI Banking and Economics Conclave 2025 in Mumbai, Thursday, November 6, 2025. | Photo credit: PTI
This observation fits in the backdrop of the Modi government’s vision to transform the country into a developed nation by 2047.
“For that (building world-class big banks) we will of course have to talk to the RBI and also to the banks themselves to see how they want to take it forward,” Sitharaman said in response to a question on whether India needs big banks at the State Bank of India’s 12th Banking and Economic Conclave.
She noted that the government will take into account the banking regulator’s views on the idea of building bigger banks.
“So there is still a lot of work to do before I say yes, I have called or the government is looking at it this way or that way.
“But you need an ecosystem and also an environment where more banks can operate and grow. So that environment is actually well established in India, but I need it to be a bit more up to date. So there is some work in progress,” Sitharaman said.
Currently, only two Indian banks – SBI (ranked 43rd) and HDFC Bank (73rd) – feature in the S&P Global Market Intelligence rankings of the world’s 100 largest banks by assets.
In 2021, the Finance Minister noted that India needs at least four or five different SBI-sized banks to meet the growing needs of the economy.
Referring to the mega consolidation of ten public sector banks (PSBs) into four in 2020, Sitharaman at the 74th General Meeting of Indian Banks’ Association in 2021 said, “One of the driving forces behind the merger (of PSBs) was that we need to scale up the banking industry to meet the new changing and growing demands of the economy.
“But that was already being considered before the pandemic. All the more reason why we would need four or five SBIs in the country.”
Derivatives trading
To a question about the government’s stance on futures and options trading, the FM said the government was “not here to close the door on F&O trading” but to make investors aware of the risks involved.
“At the same time, investors have a responsibility to understand the risks,” she said.
GST reforms
Sitharaman highlighted that the rationalization of GST rates in September 2025 actually triggered the biggest virtuous cycle for India.
“And if the virtuous cycle actually accelerates at this rate, the growth rates could be whatever you want,” she said.
Published on November 6, 2025
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