The new proposal to increase the FDI limit for public sector banks may revolutionize the banking sector. PSBs will be connected to global capital & expertise, which can open doors for unprecedented growth and global partnerships.

With public sector banks contributing 55% of the total banking sector, doubling the FDI limit could reshape the future of banking in India. In recent news, the government is proposing to the RBI that the FDI limit for public sector banks be raised from 20% to 49%, which may tap into the potential growth for the PSB industry. However, the proposal is yet to be finalized and is under discussion between the Ministry of Finance and the RBI.

Turnaround Story of PSBs

PSU banks showed a remarkable turnaround in FY25. As in FY16, the banks incurred significant losses,

See Full Page