March 15, 2026

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THE GREAT BANKING RESET

INDIA'S BANKING sector is in the middle of a massive transformation. This time, the trigger is not a crisis, but reforms, led by the Reserve Bank of India (RBI). The central bank's decision to allow UAE's NBD to acquire a controlling stake in RBL Bank, and the entry of Japan's SMBC into YES Bank, are unprecedented in a system that has always kept foreign lenders at an arm's length. Similarly, in the NBFC space, Japan's MUFG is acquiring a stake in Shriram Finance, while Mizuho Financial Group is buying a majority stake in Avendus CapitalFinance Minister Nirmala Sitharaman has also made it clear that India needs bigger and globally competitive banks to fund its $7­10 trillion GDP target over the next decade. So, in the Union Budget 2026-27, she proposed the setting up of a panel to undertake a review of the banking sector for aligning it with India's economic goals. The aim is to not just fund growth but also create banks of international scale. As per the S&P Global, only two banks--SBI (43rd) and HDFC Bank (73rd)--figured in the list of top 100 banks by assets in 2025As India's financial system readies for its next phase of growth, the 30th edition of the BT­KPMG Survey highlights banks and NBFCs that have combined scale, stability, and execution to perfection. Leading the list is ICICI Bank, the Bank of the Year for the fifth year in a row. HSBC India and L&T Finance have delivered standout performances and taken home two awards each. For the first time in the survey's history, the Lifetime Achievement Award goes to a former regulator, Shaktikanta Das, underscoring the RBI's central role in shaping India's financial systemADVANTAGE BANKS "The broad idea, it seems, is to develop a banking system that has fewer banks which are well capitalised and focused and can lend in an efficient and sustainable manner. It appears there is room for international players who have a solid track record and are committed to promoting the long-term India growth story," says Sandeep Bagla, CEO, Trust Mutual Fund. Indian banking is entering a new era where access to capital, experience in lending and international reach will matter more than ownership structure and strategic control, he saysThe RBI has, in the past, ordered caps on the share of Indian promoters in private sector banks, nudging the system towards professionally managed institutions with widely spread shareholding. This has strengthened governance but also constrained promoters' abil-

THE GOLD STANDARD

AS ICICI BANK turns 70, its journey, from a development finance institution to a bank, mirrors several defining leadership phases most prominently under N. Vaghul, who nurtured the institution; K. V. Kamath, who transformed it into a retail and technology giant; and now Sandeep Bakhshi, who restored its trust and durability. Bakhshi didn't inherit a growth story but a trust deficit when the then MD & CEO, Chanda Kochhar, quit in 2018 amid charges of misconduct. One of his first decisions was ensuring the bank was process-led and not personality-led. He also initiated a balance sheet repair in what was one of the fastest clean-ups among large private banks; he reduced risky corporate exposure, scaled down international banking, and tightened underwriting discipline. He also initiated a culture reset by stressing growth with profitability. These efforts have translated into the bank being the Bank of the Year jury award winner for the fifth time in a row. This year, it has won the Best Large Indian Bank award in the BT-KPMG Survey of India's Best Banks and NBFCs. Under Bakhshi's leadership, ICICI Bank has evolved into a lowprofile organisation with emphasis on systems and institutional strength rather than individuals. There are no big promises, no dramatic narratives, just predictable execution. Proof of this lies in Bakhshi's addresses in annual reports and investor calls, where he consistently emphasises the bank's strategic focus on growing profit before tax, excluding treasury, through a 360-degree customer-centric approach and tapping opportunities across ecosystems and micro-markets"We continue to operate within the framework of our values to strengthen our franchise. Maintaining high standards of governance, deepening coverage, and enhancing delivery capabilities with a focus on simplicity and