On the date, State Bank of India is the only Indian bank in the list of top 50 banks in terms of the Acti ripple. | Photocredit: Reuters
In synchronization with the aim of getting the status of the ‘developed nation’ by 2047, the government wants to ensure that at least two banks in the public sector become in the list of the top 20 banks in the world. On the date, State Bank of India is the only Indian bank in the list of top 50 banks in terms of the Acti ripple.
The issue was discussed during the two -day ‘Manthan’ event of banks in the public sector that start in the national capital on Friday. But there seems to be no timeline for the planned upward trajectory of the banks. “For all of us there is only one deadline and that is reaching Viksit Bharat by 2047,” said a top official.
To reach the Top 20, civil servants and market leaders agreed that PSBs have to expand their scale, strengthen management structures, adopt digital banking and artificial intelligence and build a stronger global footprint.
According to officials, consolidation is not part of the route map, which marks a shift from the merger-driven approach that is seen in earlier phases of bank reforms. On the date there are 12 banks in the public sector while the number 27 to 2017 was. Eerder, met ingang van 1 april 2020, vond de mega -consolidatie van tien PSB’s plaats, waaronder een amalgamatie van Oriental Bank of Commerce en United Bank of India in Punjab National Bank, Syndicate Syndicate Bank, Syndicate Syndicate in Canara Bank, Andhra Bank, Andhra Bank en Corporation Bank van India en Amalgamatie van Allahabad Bank.
In the meantime, the government encouraged banks during the meeting to improve Casa’s deposits and to improve their lending to MSMEs and the agricultural sector. The lenders of the public sector have seen their Casa ratio fall in the past year, which puts pressure on their net interest rate margins, the civil servant said.
Even the largest lender in the country, SBI, saw a marginal decrease in his Casa ratio in the quarter of June to 39.36 percent of 40.70 percent last year and 39.97 percent a quarter ago. Likewise, the Casa rat from Bank of Baroda also fell by 64 basic points at the quarter points to 39.33 percent in the quarter of June.
The official further said that improving Casa deposits will also help banks in their loans in important sectors of the economy. During the meeting, the banks were bumped into the public sector to increase their credit to the agricultural sector, as well as banengied micro, small and medium-sized companies.
On the other hand, the ministry asked Banken to increase their lending to the agricultural and MSME (micro, small and medium-sized enterprises) sectors, the second largest employer after the agricultural sector. The ‘Agriculture and Allied activities’ sector has long been the backbone of the Indian economy and played a crucial role in national income and employment.
With nearly 46.1 percent of the population that deals with agriculture and related activities, guaranteeing financial security and accessible credit for farmers remains a top priority for the government. It should be noted that institutional credit payment via KCC has increased from £ 4.26 Lakh Crore in 2014 to £ 10.05 Lakh Crore in December 2024. The total agricultural credit flow also rose from £ 7.3 Lakh Crore in FY13-14 to £ 25.49.
Published on September 12, 2025
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