The entire map of government banks may change
The Central Government is now preparing to change both the image and fate of Public Sector Banks (PSU Banks). It is reported that the government, in collaboration with the Reserve Bank (RBI), is preparing such a blueprint, which will completely change the map of public sector banks in the country by 2026. To achieve the goal of Developed India 2047, the government wants that our banks can stand proud not only in the country but in front of the big banks of the world.
Preparing to attack not just the country but the world
India currently has 12 public sector banks, but when it comes to the global level, we are left behind. At present only State Bank of India (SBI) has been able to make its place among the top 50 banks of the world. The surprising thing is that private sector giant HDFC Bank is also out of the list of top 100 banks of the world. The vision of the government is now very clear. If India has to become an economic superpower in the future, we must have giant banks that can fund big infrastructure projects. Big banks have more capital and have the power to withstand global market shocks easily.
Earlier when banks were reduced from 27 to 12
This is not the first time that there is talk of integration of banks, but it is the next step in a long process. You will remember how the mega merger of 2019-20 had changed the mathematics of public sector banks in the country. At that time the number of 27 banks had reduced to only 12. During that period, Oriental Bank and United Bank were merged into Punjab National Bank (PNB). Syndicate Bank became a part of Canara Bank, while Allahabad Bank was merged with Indian Bank. Similarly, Andhra and Corporation Bank were merged into Union Bank. Even before this, in 2017, SBI had increased its assets to Rs 44 lakh crore by merging its associate banks.
foreign confidence signal
Now the question is why is the government confident of taking such a big step at this time? The answer lies in the strong balance sheets of banks. In the first half of the financial year 2026 alone, 12 public sector banks have earned huge profits of about Rs 93,675 crore. It is estimated that by the end of the year this figure will cross Rs 2 lakh crore. This financial strength is giving the government the confidence to take tough and big decisions. On the other hand, the process of selling stake in IDBI Bank has also been targeted to be completed by March 2026. Examples like Yes Bank and RBL Bank are showing that the confidence of foreign investors in the Indian banking system is increasing. If everything goes as per plan, then in 2026 we may see the beginning of a new chapter in Indian banking history.
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