India’s $5 Trillion Economy Push Explained: Why Modi Govt Wants To Merge 12 Banks Into 4 Mega ‘World-Class’ Lending Giants

Updated on 01 Dec 2025 | Category: Business

As India pushes toward the $5 trillion economic milestone, Union Finance Minister Nirmala Sitharaman has said that the country will need banks that are far bigger, stronger and capable of handling the financial demands of a rapidly expanding economy. She said the government has begun to merge public-sector banks to create institutions that can operate at a global level.

India's Public Sector Banks Merger: The Centre is mulling over consolidating public-sector banks, and officials involved in the process say the long-term plan could eventually bring down the number of state-owned lenders from 12 to possibly just 4. T...