Viksit Bharat 2047: Government Targets Two Indian Banks in World’s Top 20

Indian Banks in World’s Top 20 : The Indian government is preparing for a second round of public sector bank mergers.

Under the Viksit Bharat 2047 plan, the goal is to create two mega banks—like SBI and PNB—that can compete globally and enter the world’s top 20 banks by 2027.”

Why India Wants Bigger Indian Banks in World’s Top 20 ?

India has many banks—both private and public sector—but none of them are in the world’s top 20 banks.

The biggest Indian bank, the State Bank of India (SBI), has assets worth about $780 billion and ranks 43rd globally.

The largest private lender, HDFC Bank, is much smaller with assets of $460 billion, ranking outside the top 50.

Globally, the 20th largest bank, UBS (Switzerland), has assets of around $1.7 trillion—more than double SBI’s.

This huge gap is why the government has announced a new mission: under the Viksit Bharat 2047 plan, India wants at least two mega banks in the world’s top 20 by 2027.

Bank Merger 2.0: The Government’s Big Move for Indian Banks in World’s Top 20

The only way to create such mega banks is through mergers of public sector banks. India has already seen this once before:

• In 2019–20, the number of public sector banks was cut from 27 to 12.
• Punjab National Bank (PNB) absorbed Oriental Bank of Commerce and United Bank of India.
• Canara Bank merged with Syndicate Bank.
• Union Bank of India merged with Andhra Bank and Corporation Bank.

Now, the government is preparing for Bank Merger 2.0, where smaller banks may be consolidated again to create two global champions—most likely SBI and PNB.

Why Mega Banks Are Needed in India ?

There are three main reasons behind this move:

1. Financing Infrastructure Projects

India plans to invest $4.5 trillion in infrastructure by 2040.

Large projects require single-bank financing capacity, which smaller banks cannot provide.

2. Slow Credit Growth 

Non-food credit growth has fallen from 13.7% in 2020 to under 10%.

Private banks are gaining market share, while public banks risk losing ground.

3. Global Competitiveness

Without big banks, India cannot compete with global giants like JPMorgan, HSBC, or UBS.

India’s Banking Roadmap to 2047 for Indian Banks in World’s Top 20

The government’s strategy is divided into phases:

Phase 1 (2025–2030): Identify two champion banks (likely SBI and PNB), infuse fresh capital, upgrade technology, and bring governance reforms.

Phase 2 (2031–2040): Expand globally, open branches in key markets, invest in trade finance, and diversify income sources.

Phase 3 (2040–2047): Position Indian banks as true global players, competing directly with top 20 banks worldwide.

To achieve this, SBI must grow its assets by 5–8% annually, while HDFC and PNB need to grow even faster, at 10%+ per year.

Challenges and Risks Ahead To Bring Indian Banks in World’s Top 20

This mega plan is not without risks:

1. Bad Loans

Aggressive lending could lead to more NPAs (non-performing assets), especially in politically sensitive sectors like agriculture.

2. Governance Issues 

Public banks face political interference and lack autonomy. Reforms are essential.

3. Regulatory Burden

Global expansion means following strict international banking rules.

4. Social vs. Commercial Goals

Public sector banks serve social needs but also need to focus on profits to compete globally.

Who Will Drive the moment of Bringing Indian Banks in World’s Top 20

Finance Ministry – Will set policies, milestones, and capital infusion.

Reserve Bank of India (RBI) – Will oversee regulations, both domestic and global.

Banks – Must modernize technology, raise capital, and prepare expansion strategies.

The Bottom Line in Global Bank Race 

India’s Viksit Bharat 2047 plan to create two global mega banks is bold and challenging. But with bank mergers, capital support, governance reforms, and global expansion, the goal is achievable.

If successful, India will not only strengthen its banking system but also ensure that Indian banks stand shoulder-to-shoulder with the world’s top 20 financial giants.

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