Unleashing India's Banking Potential: The Drive for Bigger Banks

Finance Minister Nirmala Sitharaman urged the creation of larger, world-class banks in India, citing ongoing discussions with the Reserve Bank of India (RBI) and lenders to enhance credit flow. Addressing the SBI Banking and Economics Conclave 2025, she underscored the critical importance of transparent and system-driven lending processes.

Sitharaman highlighted the government's past efforts in banking consolidation, including significant mergers and privatization to foster economic self-reliance. Emphasizing infrastructure development, she noted a fivefold increase in capital expenditure over a decade and called for a balance between growth and fiscal stability to ensure macroeconomic resilience.

SBI Chairman CS Setty praised reforms and advocated for higher foreign direct investment limits in public sector banks. Setty projected SBI's ascent into the top 10 global banks by 2030, reflecting confidence in India's banking sector trajectory.