Financial Services Secretary M Nagaraju has called on Public Sector Banks (PSBs) to aggressively pursue global competitiveness and strengthen their governance frameworks. This call to action was a key theme at the recent "PSB Manthan 2025," a two-day program organized by the Department of Financial Services (DFS). The event brought together senior leaders from PSBs, regulators, industry experts, academicians, technologists, and banking practitioners to discuss the future of public sector banking in India.

Nagaraju emphasized that PSBs have successfully transitioned from a period focused on survival and stability and are now well-positioned to become drivers of growth, innovation, and leadership as India works towards achieving "Viksit Bharat 2047". He urged the banks to broaden their role as sectoral champions, supporting both traditional and emerging industries.

Discussions during PSB Manthan 2025 covered a wide array of critical areas, including customer experience, governance, innovation, credit growth, risk management, workforce readiness, and technology modernization. Participants emphasized the need for PSBs to reimagine customer journeys in the digital age, simplify processes, and deliver seamless services while simultaneously strengthening customer trust.

Technology transformation emerged as a central theme. Experts highlighted the urgent need for PSBs to move beyond outdated legacy systems and adopt agile, interoperable platforms. These modern platforms should be capable of integrating with India's digital public infrastructure, delivering seamless digital services, and enhancing cyber resilience. Furthermore, the adoption of Artificial Intelligence (AI) was discussed, with emphasis on establishing robust governance frameworks to manage risks, promote responsible AI adoption, and implement safeguards.

The importance of collaboration with fintech companies, academic institutions, and global organizations to accelerate innovation was also highlighted. PSBs were encouraged to deepen their existing strengths in sectors like agriculture, MSMEs, housing, and infrastructure. They were also urged to take a leading role in supporting emerging sectors, including renewable energy, electric mobility, semiconductors, shipbuilding, and green hydrogen. Nagaraju stressed that PSBs should aspire to become globally competitive banks with the capacity to support Indian enterprises operating overseas and compete with leading international financial institutions.

In addition to these strategic goals, the DFS Secretary also emphasized the importance of financial inclusion initiatives. He urged PSBs to intensify their efforts to expand access to financial services for underserved communities and enterprises, and reviewed progress made under various financial inclusion schemes aimed at bolstering access to credit and enhancing economic empowerment. He also advised PSBs to focus on technological advancements, maintain robust financial health, ensure timely and quality redressal of public grievances through responsible banking practices, and continuously work to enhance customers' banking experience.