State Bank of India (SBI) Chairman CS Shetty said on Friday that the country’s largest public bank SBI and two private sector banks will be among the top 10 banks of the world in terms of market capitalization by the year 2030. Speaking to reporters during an event here, Shetty said that the market capitalization of SBI has crossed $ 100 billion. He said that it is not just SBI. We also have two major private sector banks whose market valuations are quite high. I believe that they will also move forward with us. However, Shetty did not reveal the names of these two private sector banks.
HDFC and ICICI Bank valuation
At present, private sector HDFC Bank is the most valuable bank in the country with a market valuation of Rs 15.11 lakh crore. ICICI Bank is at second place with a valuation of Rs 9.59 lakh crore. The market capitalization of SBI is currently Rs 8.82 lakh crore. However, SBI is India’s largest bank in terms of assets and is ranked 43rd globally. He said that the bank had already set a target to be ranked among the top-10 global banks by 2030.
India needs a world class bank
This statement of the SBI Chairman has come at a time when the Central Government is emphasizing on the formation of some big banks by merging many banks. Finance Minister Nirmala Sitharaman had recently said that the country needs big and world class banks. Along with this, Shetty said that the purpose of the process of raising capital of Rs 25,000 crore is not to raise capital for growth but to give assurance to the banking industry that the capital buffer position of SBI is strong. He said that the capital adequacy ratio will be more than 15 percent by the end of the year, while the target is to maintain the core Tier-1 capital level above 12 percent. Shetty said the growing interest among engineering graduates for jobs in SBI has helped the bank adapt to technology and bring new talent into the field faster.