M Nagaraju, Secretary, Department of Financial Services (DFS) has called for Indian banks to think bigger, scale faster, and aim for a place among the world’s largest lenders.
Speaking at the CNBC-TV18 Banking Transformation Summit 2025, Nagaraju said, “Our banks deserve to be in the top 10 globally. At least two Indian banks need to make it to that list.” He stressed that this ambition could be realised through multiple routes, including organic growth, but cautioned against the risks of over-leveraging.
Placing the banking sector in the context of India’s broader economic rise, he added, “Next year we will be the third-largest economy. This is the time for India to take a leap of faith on reforms and lending.” The government, he said, was confident of stronger credit growth and record net profits for public sector banks (PSBs) this year as well as in the current quarter.
Underscoring that the country needs “bigger and more banks” — which he described as complementary rather than contradictory — Nagaraju highlighted the need for the credit-to-GDP ratio to rise to 120–130%. He also pointed to the convergence of fintech and banking as a key driver for growth.
“Banks are free to look at ways to become bigger,” he said, while noting that the Reserve Bank of India’s laid-out policy on bank licences may pave the way for more players as maturity in the sector grows.
He further said the government is working on an export relief package to support exporters, and underlined that insurance companies have promised to pass on the benefits of zero GST on premiums. With PSBs piloting several social schemes, Nagaraju concluded that the outlook for the financial sector remained robust.
(Edited by : Sheersh Kapoor)
