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Informist, Saturday, Sept. 13, 2025

 

NEW DELHI – India's public-sector banks have moved past the phase of survival and stability. They are now positioned to play a larger role as champions of growth, innovation, and leadership in the government's aim of 'Viksit Bharat 2047', M. Nagaraju, secretary, Department of Financial Services, Ministry of Finance, said.

 

"The Secretary also highlighted the need for PSBs (public-sector banks) to aspire to global competitiveness, strengthen governance and operational resilience, and expand their role as sectoral champions across both traditional and emerging industries," the finance ministry said in a release Saturday.

 

Nagaraju was speaking at the two-day 'PSB Manthan 2025' event, which concluded Saturday and brought together senior officials from state-owned banks, current and former regulators from the Reserve Bank of India and Securities and Exchange Board of India, as well as academics. Heads of all 12 state-owned banks attended the conference.

 

"The discussions set near-term priorities around governance, customer service, technology, and credit delivery, while also outlining a long-term pathway for Public Sector Banks to align with sustainable growth and evolve into globally competitive institutions to realise the vision of Viksit Bharat 2047," the finance ministry said.

 

At the event, it was suggested that state-owned banks should adopt next-generation technologies, build common infrastructure or shared utilities, and design hyper-personalised products, the release said. The discussions at the event ranged from customer experience in a digital era, ensuring sustainable credit growth to strengthening risk management frameworks. There were suggestions that banks move beyond just digitising processes but to reimagine delivering banking services.

 

Public-sector banks should also put in place robust governance frameworks for the responsible use of artificial intelligence, while accelerating innovation through collaboration with technology partners. Leaders of state-owned banks raised some concerns on governance, technology adoption, and customer trust, the release said.

 

The event came at a time when clouds of uncertainty have surrounded India's external landscape after the US, India's top export destination, imposed 50% tariffs on goods shipped from the country. State-owned banks had also reported record profits in 2024-25 (Apr-Mar), which found no mention in the release. Finance Minister Nirmala Sitharaman was initially slated to attend the event, a finance ministry official had told Informist in August.  End

 

Reported by Aaryan Khanna

Edited by Ashish Shirke

 

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