Public sector banks (PSBs) have moved beyond a phase of survival and stability and are now set to emerge as key drivers of growth, innovation, and leadership in India’s journey towards Viksit Bharat 2047, said Financial Services Secretary M. Nagaraju.
Speaking at the conclusion of the two-day PSB Manthan 2025, Nagaraju emphasized the need for PSBs to aim for global competitiveness, strengthen governance, enhance operational resilience, and establish themselves as sectoral champions across both traditional and emerging industries.
Organized by the Department of Financial Services (DFS), PSB Manthan 2025 focused on “Reimagining Public Sector Banking for a Developed India.” The event brought together senior leadership from PSBs, regulators, industry experts, technologists, academicians, and banking practitioners.
The program featured in-depth discussions on improving customer experience, governance, credit growth, risk management, innovation, and technology modernization.
Key recommendations from the sessions included adopting next-generation technologies, creating common infrastructure, and designing hyper-personalized banking products to better meet customer needs.
Speakers stressed the importance of modernizing PSB technology by moving away from legacy systems toward agile, interoperable platforms capable of delivering seamless digital services, enhancing cyber resilience, and integrating with India’s digital public infrastructure.
The forum also highlighted the need for robust governance frameworks for Artificial Intelligence (AI), ensuring responsible adoption, strong model risk management, and safeguards against emerging risks.
Collaboration with fintechs, academia, and entrepreneurs was underscored as a key strategy to enhance capabilities and accelerate innovation in public sector banks.
Participants reaffirmed the pivotal role of PSBs in promoting financial inclusion and supporting national priorities, particularly in agriculture, MSMEs, housing, infrastructure, and emerging sectors such as renewable energy and digital industries.
