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India's Finance Minister Proposes More Bank Consolidation

11/7/2025

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Nirmala Sitharaman, India's Finance Minister, announced plans to create more big banks by consolidating state-owned banks.
As of March, twelve state-owned banks held 171 trillion rupees in assets, 55% of India's banking sector.
The government previously consolidated 27 banks into 12 in 2020.
Sitharaman said discussions with the Reserve Bank of India are ongoing to pursue further consolidation and potentially increase foreign investment in state-owned lenders, to support larger banks.

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Story summary

Nirmala Sitharaman, India's Finance Minister, announced plans to create more big banks by consolidating state-owned banks.
As of March, twelve state-owned banks held 171 trillion rupees in assets, 55% of India's banking sector.
The government previously consolidated 27 banks into 12 in 2020.
Sitharaman said discussions with the Reserve Bank of India are ongoing to pursue further consolidation and potentially increase foreign investment in state-owned lenders, to support larger banks.