India, Sept. 3 -- As India aspires to become a developed economy by 2047, it cannot depend only on small banks, limited bond markets and foreign financial institutions. It will need financial institutions that are large enough, resilient and ambitious enough to operate on a truly global scale.

This is not just a question of banking policy. It is about building the financial architecture of the India we want to see in 2047.

When PM Modi's Government took office in 2014, public sector banks were still dealing with the consequences of the credit boom of the preceding years and a sharp rise in bad loans.

The response was a sustained programme of reforms aimed at cleaning up bank balance sheets, improving governance, strengthening Capital a...