India requires more large-scale banks with strong financial resources, skilled talent, and advanced technology to support major projects, create jobs, and achieve the vision of Viksit Bharat by 2047, said M Nagaraju, Secretary, Department of Financial Services (DFS).
Need for More Global Banks
Speaking at the 14th RK Talwar Memorial Lecture, organized by the Indian Institute of Banking & Finance, Nagaraju emphasized that India must develop multiple globally competitive banks with an international presence. These banks would provide better access to global funds, top talent, and technical expertise.
“At present, only two Indian banks—State Bank of India (SBI) and HDFC Bank—feature in the top 100 global banks by total assets. This is not enough, especially when banks from China and the US dominate the top 10 positions globally,” he stated.
Expanding Operations and Global Reach
Nagaraju urged Indian banking giants to expand their reach by entering global financial hubs and tapping into international funding sources such as green bonds, sustainability-linked loans, and foreign debt markets. This growth would enable banks to finance large infrastructure and manufacturing projects, boosting employment and urban development.
“Large banks play a key role in ensuring financial stability and managing economic risks. They have the expertise to absorb financial shocks and drive innovation by investing in new financial technologies, making banking services more efficient and accessible,” he added.
Supporting India’s Economic Vision for 2047
As part of the Viksit Bharat vision, India aims to grow its Gross Domestic Product (GDP) from the current $3.89 trillion to $30 trillion by 2047. The country also seeks to increase per capita income from $2,700 to $18,000–$20,000 and raise credit availability from 56% of GDP to 130%. Additionally, achieving 100% financial literacy by 2047 is a major goal.
Challenges and Capital Constraints
While highlighting the role of banks in supporting economic growth, Nagaraju pointed out that Indian banks must overcome capital constraints. “A strong capital base is crucial. Banks must raise significant capital to support the nation’s ambitious economic growth plans,” he said.
With a strong and competitive banking sector, India can enhance its financial stability, improve global integration, and accelerate its journey towards becoming a developed economy by 2047.
