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SBI Supports Mergers Among State Lenders to Boost Scale
14 Nov
Summary
- SBI chairman backs another round of mergers among state-backed banks
- SBI controls 25% of India's $2.18 trillion loan market, dominates industry
- Bank plans to expand wealth management offerings, open more hubs
As of November 14th, 2025, the State Bank of India (SBI) is supportive of another wave of mergers among state-backed lenders. SBI's chairman, Challa Sreenivasulu Setty, believes that "some further rationalisation might make sense" as there are still some smaller, sub-scale banks in the industry.
SBI, which controls about one quarter of India's ₹194 lakh crore ($2.18 trillion) loan market, is the country's biggest bank. The bank has a balance sheet of $787 billion and dominates the industry with its more than 22,500 branches and over 500 million customers.
The Indian government is exploring options to create large state lenders, which aligns with its goal of transforming the country into a developed economy by 2047. SBI's chairman says the bank is keen to expand its market share further, stating that "even as a dominant player, our approach isn't about defending market share but acquiring more."
Additionally, SBI is ramping up its wealth management offerings, having hired 1,000 relationship managers over the past 12 months. The bank plans to add another 50 to 100 wealth hubs across India's metro and large urban centers in the next two years to cater to the booming demand for wealth management services.
