Archive · 7 Nov 2025
KV Kamath Backs Banking Consolidation for Scale and Efficiency in India
A big boss in the world of finance named KV Kamath thinks India's banks need to get stronger together.
He believes that when banks join forces, they can become bigger and work smarter, like a team.
This is happening because the government has been cleaning up banks and helping them merge.
Kamath says this makes banks healthier and ready to lend more money to businesses.
He also mentioned that while companies are borrowing from stock markets instead of banks, there's still plenty of money available in different places.
He advised banks to be smart about spending money on new technology, only buying what they really need.
He feels India's approach to new technologies is steady and helpful.
KV Kamath advocates for consolidation in India's banking sector to improve scale and efficiency.
He stated that clean balance sheets and government consolidation efforts position the banking system for growth.
Finance Minister Nirmala Sitharaman confirmed the next phase of public sector bank consolidation is underway.
Kamath emphasized the need for a level playing field between public and private sector banks.
He advised banks to invest prudently in technology, focusing on relevant and adaptive systems.
- Who
- KV Kamath, Chairman of Jio Financial Services, and Finance Minister Nirmala Sitharaman
- What
- Discussed the need for consolidation and operational efficiency in India's banking sector, and the status of public sector bank consolidation.
- When
- Friday, November 7, 2025
- Where
- Mumbai, India
- Why
- To enhance the long-term competitiveness, scale, governance, and lending capacity of Indian banks to meet the demands of a rapidly expanding economy.
KV Kamath's View
Current Scenario
Corporate Credit Demand
KV Kamath's View
Corporate credit demand from banks is muted because companies are increasingly using capital markets for funding.
Current Scenario
Corporate credit demand from banks is not ideal, as capital markets are readily providing funding.
Technology Spending
KV Kamath's View
Banks should invest in technology that is appropriate for today, avoiding excessive or misdirected expenditure.
Current Scenario
There is a risk of indiscriminate technology spending that may not yield commensurate returns.
- Keynote Speaker
- KV Kamath, Chairman of Jio Financial Services
- Event
- CNBC-TV18 Global Leadership Summit 2025
- Location
- Mumbai
- Date
- Friday, November 7, 2025
- Main Argument
- Consolidation and operational efficiency are crucial for the Indian banking sector's long-term competitiveness.
- Bank Balance Sheets
- Clean and healthy, positioned for growth.
- Public Sector Bank Consolidation
- Finance Minister confirmed active work on the next phase.
Sources
Bank unions criticise FM remark on privatisation, demand strengthening of PSU banks
India needs world-class banks; in talks with RBI, lenders: FM Sitharaman
India needs big and world-class banks, says Nirmala Sitharaman
Discussions on with RBI to build big, world-class banks: FM Nirmala Sitharaman
FM urges PSBs to change HR policies, ensure branch staff know local language
FM Sitharaman urges public sector banks to hire staff fluent in local language
FM says govt not shutting door on F&O, world class banks in India, and a 'glaring' consumption post GST reform
Sitharaman wants large champion banks. Fresh mergers on the cards?
'India Needs World-Class Banks, We Are Working On It': Nirmala Sitharaman
FM says India needs lot of big, world-class banks; urges them to expand credit availability
World-class banks in India: Focus on creating ecosystem in which more banks can operate to grow, says Finance Minister Sitharaman
Finance minister hints at more bank mergers
India needs to create big, world class banks, says Finance Minister
Bankers should speak the language of the customer: FM
Nirmala Sitharaman urges banks to post staff fluent in local languages to improve service
India needs many large world-class banks: FM
UFBU strongly opposes FM remarks on bank privatisation
Bank Unions Protest FM's Privatisation 'Endorsement'
Banks bet on agri, retail & MSME as growth drivers
India Will Need More Banks: DFS Secy
