New Delhi: The Ministry of Finance is set to convene a two-day PSB Manthan from September 12, bringing together the top leadership of public sector banks (PSBs) to brainstorm on the next phase of banking reforms and deepen the Enhanced Access & Service Excellence (EASE) agenda, sources said.
This high-level strategy session, spearheaded by the Department of Financial Services (DFS), comes at a time when PSBs are recording unprecedented profitability, driven by strong credit growth, operational efficiencies, and digitisation.
Backdrop: Record Profits for PSU Banks in FY25
The timing of the Manthan aligns with public sector banks posting their highest-ever cumulative profit of ₹1.78 lakh crore in FY25, marking a 26% increase over FY24.
- In FY24, all 12 PSBs reported a total profit of ₹1.41 lakh crore.
- The absolute increase in profit for FY25 was approximately ₹37,100 crore.
- SBI alone accounted for over 40% of the total PSB profit, logging ₹70,901 crore, up 16% YoY.
- Punjab National Bank registered the highest net profit growth at 102%, touching ₹16,630 crore.
- Punjab & Sind Bank followed with a 71% jump in profit to ₹1,016 crore.
Q1 FY26 Off to a Strong Start
The momentum has continued into the current financial year, with PSBs collectively posting ₹44,218 crore profit in Q1 FY26, an 11% increase over the ₹39,974 crore earned in Q1 FY25.
- SBI again led the pack, contributing 43% of the Q1 FY26 profit.
PSB Manthan 2025: A Strategic Continuation of Reform Initiatives
The upcoming PSB Manthan will be the first since April 2022, and will serve as a forum for top management to–
- Review progress on EASE reforms
- Suggest new-age digital and governance initiatives
- Address challenges in HR, customer service, collaboration, and performance-linked incentives
Earlier Manthan sessions, including the first held in November 2017, led to the formation of working groups on key areas like digitisation, HR incentives, governance, and customer service. Many of these recommendations have since been integrated into the EASE framework.
Historical Context: From Gyan Sangam to PSB Manthan
Before the PSB Manthan format, the Finance Ministry had held two rounds of ‘Gyan Sangam’ in 2015 and 2016, which catalyzed several major reforms in India’s financial sector – including steps toward privatisation of public sector banks and insurers.
The PSB Manthan sessions are now viewed as an evolution of that initiative, with a sharper focus on performance-driven culture, digital innovation, and customer-centric service delivery.
