HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
India needs world-class banks; in talks with RBI, lenders: Sitharaman
Nov-07-2025

Finance Minister Nirmala Sitharaman has said that the country needs big and world-class banks, and discussions are on with the Reserve Bank of India (RBI) and lenders in this regard. She said before the government takes a call on this, a lot of the work has to be done, including taking inputs from the RBI as to how they want to build larger banks. She said ‘it is not by creating from those which exist today...just by amalgamation that can also be one of the routes, but you need an ecosystem and an environment in which more banks can operate and operate to grow. So, that environment is actually well established in India, but I needed to be more dynamic. So, some work is happening on it’.

Addressing the 12th SBI Banking and Economics Conclave 2025, she asked lenders to deepen and widen credit flow to the industry, exuding confidence that GST rate cut-driven demand would unleash a virtuous investment cycle. She advised that access to finance is absolutely critical and that a system-driven, transparent lending process is essential. She emphasised that infrastructure creation is the government’s main focus, and capital expenditure has increased fivefold in the last decade.   

Talking about fiscal prudence, she said the government is maintaining a sustained self-reliance principle in making sure that the fiscal discipline is never threatened. She said balancing growth spending with fiscal stability ensures macroeconomic resilience, keeps inflation in check, and preserves investor confidence. She also said the government's goods and services tax reforms, which took effect on September 22, kick-started private capital expenditure, with companies seeing confidence in consumption demand.


  RELATED NEWS >>