According to S&P Global Market Intelligence’s annual global bank ranking of 2021, SBI fared at the 57th rank with $638.49 billion in assets, down from 55th rank last year.
India wants a lot of different banks and a lot more large-sized ones to fulfil the growing needs of the country needs within the path of creating a wise recovery post-pandemic disruptions, minister of finance Nirmala Sitharaman.
Speaking at the 74th Annual General Meeting of the Indian Banks’ Association at Mumbai, Sitharaman said there was an urgent need to scale up banking to fulfil the growing needs of the business and additionally to make sure that all economic centres of the country are coated with a minimum of one physical or digital banking presence.
“The method in which the economy is shifting to a distinct plane altogether, how business is adapting, numerous new challenges keep arising.
To deal with these challenges, we want not simply more, however larger banks,” she said while delivering the keynote speech at the annual general meeting of the Indian Banks’ Association (IBA).
“Banks have to grow in size and there ought to be many more large banks of SBI’s size,” an IBA statement said, quoting the minister of finance. SBI is India’s largest investor.
The finance minister’s statement is in line with the Union cabinet’s March four, 2020, call to amalgamate ten public sector banks (PSBs) into four to alter the “creation of digitally driven consolidated banks with world heft and business synergies”.
The government integrated Oriental Bank of Commerce and United Bank of India with Punjab National Bank; Andhra Bank and Corporation Bank with Union Bank of India; Syndicate Bank with Canara Bank; and Allahabad Bank with Indian Bank from April one, 2020.
While there’s “no specific proposal” into consideration to amalgamate additional PSBs, the Union budget 2021-22 announced the government’s intent to require up privatization of two state-owned banks, junior finance minister Bhagwat Karad told the Lok Sabha on August 2, 2021.
Consistent with the government’s public sector policy, banking is one of the strategic sectors where PSBs can have a minimum blank presence.
According to S&P world Market Intelligence’s annual world bank ranking of 2021, SBI fared at the 57th rank with $638.49 billion in assets, down from fifty-fifth rank last year. At the number one rank, Industrial & bank of China has an assets price of $5107.54 billion.
The highest four largest banks are the Chinese—Industrial & commercial bank of China, China Construction Bank Corporation, Agricultural Bank of China and Bank of China—with a combined plus price of over $17 trillion. SBI is the only Indian bank to feature within the top one hundred list.
The statement said the minister of finance appreciated the efforts of PSBs for the graceful conduct of the consolidation and regular banking activities despite the pandemic.
Sitharaman asked banks to be futuristic.
“They ought to have a vision for the immediate future and for the long run also. while digitalization may be the immediate goal, banks have to explore other unique opportunities for the longer term,” the statement said.
She also asked banks to develop models and better understand businesses focused on exports because the country has set a $2 trillion export target by 2030.
Concerning funding for the below sector, she said that a government sector development financial institution (DFI) is turning out soon.
Sitharaman said that the Indian economy is at a crucial reset stage, and banks would form its backbone by providing better financial services.
