NEW DELHI: India will aim to have at least two public sector banks (PSBs) among the world’s top 20 by 2047, aligned with the Viksit Bharat vision, a government official said.
At present only State Bank of India and HDFC Bank figure on the list of top 100 global lenders by assets.
Strengthening corporate governance in PSBs, improving customer experience, and making them globally competitive through modernisation — including use of artificial intelligence — are among key issues being deliberated at the two-day PSB Manthan conclave that began on Friday, the official said.
Other issues on the agenda include cybersecurity, workforce transformation, risk management and personalised banking.
“The aim is to prepare PSBs for the future and scale them up organically, while increasing resilience,” he said, citing global uncertainties. Improved autonomy and the next phase of growth are also on the table.
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Reserve Bank of India deputy governor Swaminathan J and chief economic adviser V Anantha Nageswaran were among the senior functionaries who addressed sessions on Friday.Bankers deliberated on dwindling current account-savings account (CASA) ratio and the need to improve them. MSME Lending
The need for sprucing up credit growth in priority sector areas such as agriculture and micro and small medium enterprises (MSMEs) was also a topic, according to the official.
Credit growth continued to moderate in July 2025, with non-food credit growth easing to 9.9% year-on-year, a drop from 13.7%. According to a research note by CareEdge Ratings, industrial credit demand continues to underperform, with lending to large industries growing by less than 1% in July.
State-run lenders have substantially improved their financial performance and their gross NPAs have reduced to 2.58% as of March, from 9.11% in March 2021. During the same period, their net profit increased to Rs 1.78 lakh crore, from Rs 1.04 lakh crore, and dividend payouts grew to Rs 34,990 crore, from Rs 20,964 crore.
The last PSB Manthan was held in 2022, after which the government had asked banks to set up a three-year roadmap for business strategy and suggested they explore more collaboration amongst themselves, with larger banks sharing their best practices with smaller lenders and guiding them in areas where they need more expertise.
Under EASErise, the reform agenda for FY26, PSBs’ core focus will be on fortifying risk-management systems, enhancing their capacity to absorb economic shocks, and upholding financial stability.
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