India has set an ambitious goal to place two public sector banks among the world’s top 20 by 2047.

Is this the new era for Indian banking excellence?

This rhetoric is important because it sets a bold vision for India’s banking sector, driving motivation, strategic reforms, and global competitiveness among public sector banks.

Why is this Goal important ?

Currently, only State Bank of India and HDFC Bank are listed among the world’s top 100 lenders when measured by their total assets.India wants more public sector bank to reach global competitiveness.

To do this it needs to improve in several key areas governance, customer service, risk control, and modern technology.

What was the two days public sector manthan.

• Corporate Governance : Making decision making more transparent and strong.
• Customer Experience : Improving how banks deal with and serve their customers.
• Modernization and Technology : Using AI, strengthening cyber security, and updating bank staff and systems.
• Risk Management : Building ability to handle financial shocks.

In the two days manthan senior officials including from the Reserve Bank of India are involved. They want public sector bank to be future ready and grow in a systematic planned manner.

What about the public sector banks performance So Far.

There has been a big improvement in public sector bank’s non performing assets. These are bad loans that banks ca not recover. They dropped from 9.11 precent to 2.58 precent, which is very important for the banks because higher NPA Rate is not good for banks.

Public sector banks profits have increased significantly

Net profit increased from Rs. 1.04 lakh crore to Rs. 1.78 lakh crore. Dividend payments rose from about Rs. 20,964 crore to Rs 34,990 crore.

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Focus Areas for the coming years for Public sector banks

Strengthening loans to priority sectors like agriculture and MSME since loan growth in non food credit has slowed.

Improving metrics like the CASA ratio as it affects bank cost of funds.

Encouraging collaboration between banks larger banks sharing best practices with smaller ones.