India sets ambitious target: At least two public sector banks to join global banking elite by 2047

A high-level meeting is happening in Delhi between top Indian bankers and officials from the Department of Financial Services (DFS), focusing on the future growth trajectory of India’s banking sector and the country’s strategic vision for a Viksit Bharat by 2047.

According to the sources, India is setting its sights high: at least two public sector banks are expected to break into the world’s top 20 banks by asset size over the next two decades. This bold target reflects the government’s ambition to not only strengthen the domestic financial sector but also elevate India’s position in the global banking landscape.

The urgency of this plan is amplified by growing global economic uncertainty. With shifting trade patterns, geopolitical tensions, and volatile markets, Indian banks are increasingly being viewed as key instruments to expand India’s presence in new international markets, support cross-border business, and safeguard the economy against external shocks.

A central pillar of the strategy is the extensive adoption of Artificial Intelligence (AI). Sources shared that AI will play a pivotal role in driving organic growth for banks—helping them enhance customer service, improve risk management, optimize operational efficiency, and reach untapped customer segments, especially in rural and semi-urban areas.

Further, regulatory reforms are reportedly under consideration to streamline processes and eliminate outdated hurdles that constrain public sector banks from scaling globally. These reforms aim to boost competitiveness, promote innovation, and enable faster decision-making, aligning with global best practices.

Currently, India’s largest public sector lender, the State Bank of India (SBI), stands at the 43rd position globally by asset size. Closing the gap to the top 20 is a significant challenge, but government sources are confident that with strategic reforms, technological upgrades, and focused international expansion, Indian public sector banks can achieve this milestone well ahead of the 2047 target.