Don't want to miss the best from Business Standard?
Saturday, November 29, 2025 | 08:33 PM ISTहिंदी में पढें
A new wave of reforms set to sweep banking, boost capital and growth
At this juncture, allowing higher foreign stake in PSBs is the right call. It will help them increase capital and scale up business
 "MSME credit target FY26, MSME loans public sector banks, PSB MSME lending growth, Finance Ministry MSME focus, India MSME sector credit, SBI MSME loan target 2025, PNB MSME lending growth, MSME credit outstanding FY25, MSME loan YTD growth 2025, GNPA")
premium
Allowing higher foreign stakes in PSBs marks the next big reform wave — helping banks raise capital, scale up, and operate more like business entities than government extensions.
When it rains, it pours. Typically, this means when one bad thing happens, multiple bad things follow in quick succession – making a difficult situation worse. In the context of the Indian banking space, it is the opposite: Too many good things are happening. The sector is embracing reforms on multiple fronts.
The industry has been constantly in the news in the past decade. First, there was a massive clean-up drive by the Reserve Bank of India (RBI) through a unique tool called asset quality review. The regulator unearthed the hidden pile of bad assets and ensured that banks set
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
