Indian government is exploring the public sector bank consolidation aiming global competence - a step to Viksit Bharat 2047

India plans for the next phase of public sector bank consolidation. In the words of Finance Minister of India , said" a lot of big, world class banks" to meet the growing needs of a fast expanding economy. Further the Minister said " We will need to sit and talk with the Reserve Bank of India and banks on how they want to take it forward and also discuss with the Reserve Bank of India how they want to build larger banks." It is reported that discussions with the Reserve Bank of India and other concerned banks are already underway.

The undergoing process of consolidation of public sector banks is not just for amalgamation, but for creating an environment in which banks can operate and grow together. The last major bank consolidation was completed in 2020 whereby 10 public sector banks were merged into four larger banks. With the next phase of bank consolidation India aims to build stronger larger banks for competing with global scale banking entities. The proposed consolidation of public sector banks will create mega banking entities capable of financing the nation's growing infrastructure, manufacturing and technological needs. 

The present move will help India's vision of becoming a developed economy by 2047 (Viksit Bharat 2047). The proposed amalgamation will accommodate modernisation ideas including use artificial intelligence, cyber security, workforce transformation, risk management and personalised banking for providing more improved banking service and customer experience. At present the HDFC AND SBI which represent on the list of top 100 global lenders by assets. The SBI is the first bank from India to appear in the list of top 100 largest banks at 43rd place. The HDFC is the second Indian bank to appear in the list at 73rd place.