PSB Manthan 2025: PSU banks to play a larger role towards Viksit Bharat 2047, says DFS Secretary

Public sector banks have moved beyond a phase of survival and stabilisation and are now expected to emerge as drivers of growth, innovation and leadership in the journey towards Viksit Bharat 2047, said Secretary of Department of Financial Services (DFS) M Nagaraju.

Speaking at the two-day PSB Manthan 2025, which concluded on Saturday, Nagaraju stressed that state-owned banks must aspire for global competitiveness, enhance governance, operational resilience, and position themselves as champions across both traditional and emerging sectors.

The event, organised by DFS, was themed around reimagining public sector banking for a developed India and brought together senior bank leadership, regulators, industry specialists, academics, technologists and practitioners. Discussions centred on customer service, governance, innovation, credit expansion, risk management and modernisation of technology.

According to the finance ministry, participants emphasised the adoption of next-generation technologies, development of shared infrastructure and the creation of hyper-personalised financial products. Speakers called for public sector banks to move away from legacy systems and adopt agile, interoperable platforms that can provide seamless digital services, boost cyber resilience and integrate smoothly with India's expanding digital public infrastructure.

The deliberations recommended robust governance frameworks for artificial intelligence, with a focus on managing model risks, promoting responsible AI use and putting safeguards in place to address emerging threats. Experts further highlighted the importance of working with technology partners who maintain openness and interoperability, reducing dependence on single vendors while enabling long-term innovation and flexibility.

Participants highlighted the need for closer collaboration between banks, fintechs, academia and entrepreneurs to strengthen capabilities and accelerate innovation. They also reiterated the pivotal role of public sector banks in advancing financial inclusion and supporting national priorities, from agriculture, MSMEs, housing and infrastructure to fast-growing areas such as renewable energy and digital industries.