Merging PSBs to create 'champion banks' for Viksit Bharat 2047
India's gearing up to restart merging public sector banks (PSBs) by the end of the current financial year, after a six-year pause.
It's all part of the Viksit Bharat 2047 plan—basically, making a few "champion banks" strong enough to help India hit its goal of becoming the world's third-largest economy by 2027-28.
First up: three or four smaller PSBs will join forces with bigger ones to create more powerful banks.
Merged banks could help India catch up with global players
The idea is to put at least two Indian banks among the world's top 20, showing off India's growing financial muscle.
Analysts say bigger, merged banks should be able to lend more for major projects and reach more people—including those in underserved areas.
It also means Indian banks could start catching up with global giants like China's, which already have several top-ranked players worldwide.