Finance Minister Nirmala Sitharaman has asked Public Sector Banks (PSBs) and financial institutions to play a bigger role in building Viksit Bharat (Developed India). Key points: PSBs have major strengths such as a large customer base, wide branch network, geographical reach, institutional experience and strong digital capabilities. She said banks should identify their own areas of competitive advantage rather than all following the same strategy. Banks should focus on their strengths—such as geography, customer relationships, sector expertise, technology or international operations. PSBs should act ahead of demand, identify opportunities early and develop capabilities in advance. The objective is to make India's public sector banking system more competitive and globally influential. Her comments follow Prime Minister Narendra Modi's call for at least one Indian bank to enter the world's top five banks as India moves towards becoming a developed nation. Bottom line: The government wants PSBs to move beyond traditional banking and become larger, more competitive and globally significant institutions supporting India's economic growth.

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