Public Sector Banks Meet in Delhi to Map Banking Roadmap for Viksit Bharat

A Two-Day PSB-PFI Confluence Maps Banking's Viksit Bharat Roadmap

The Department of Financial Services (DFS) is convening a two-day meeting of public sector banks (PSBs) and public financial institutions in New Delhi from Monday, with the stated aim of setting a next-generation reform agenda for the banking system.

The “PSB Confluence” will bring together around 125 senior executives — chairmen, managing directors and executive directors of state-owned banks — alongside leaders from Nabard, Exim Bank, Sidbi, National Housing Bank, IIFCL and NaBFID. Finance Minister Nirmala Sitharaman and Minister of State for Finance Pankaj Chaudhary are expected to address the gathering.

Deposit mobilisation is expected to dominate the discussions because public sector banks have lagged private peers in deposit growth. Participants will look at ways to draw a larger share of household savings into the banking system, while also examining credit expansion, rural value-chain infrastructure, priority-sector lending, youth-focused products, global capability centres and a reworking of the credit card business.

The government has framed the meeting as a working session rather than a talk shop: participating institutions are expected to identify practical, time-bound initiatives that can be adopted across the banking ecosystem.

Where Deposit Mobilisation and Wealth Management Leave PSBs

Why Deposit Mobilisation Is the Centre of Gravity

The focus on household deposits is not accidental. Public sector banks continue to lag private peers in deposit growth, and deposits remain a stable, low-cost funding base. If state-owned banks cannot close that gap, their ability to fund credit expansion without relying on higher-cost borrowings remains constrained. The conclave’s emphasis on attracting a larger slice of household savings signals that the finance ministry sees this as a competitiveness issue, not just a funding metric.

What the Wealth and Asset Management Push Signals

The report identifies a concrete strategic shift: PSBs are expanding beyond traditional banking into wealth and asset management. Punjab National Bank, Punjab & Sind Bank and Indian Bank are setting up dedicated wealth and mutual fund verticals, while State Bank of India, PNB and Canara Bank already operate asset management businesses through joint ventures. That points to a broader effort to deepen retail relationships and capture fee income from financial savings, rather than depending mainly on lending spreads.

Where the Rural and Inclusion Tracks Could Land

The agriculture and priority-sector tracks are aimed at strengthening rural value-chain infrastructure and extending formal credit to underserved segments. Because Nabard, Sidbi and Exim Bank are participating, the likely outcome is a push to convert policy intent into specific post-harvest, market-linkage and credit-access pilots. The credit card and global capability centre themes suggest the PSBs are also being steered toward fee-generating digital and operational capabilities, though no concrete rollout details are yet announced.

Time-Bound Moves Bank Leaders Can Adopt From the Conclave

• The government has asked for time-bound, adoptable initiatives. PSB leadership teams should arrive with specific deposit-mobilisation proposals tied to household savings — such as product pricing, branch-network activation or distribution partnerships — rather than general commitments.
• The planned wealth and mutual fund verticals at Punjab National Bank, Punjab & Sind Bank and Indian Bank should be paired with clear governance, technology and distribution milestones, since the DFS agenda is explicitly focused on measurable outcomes.
• Agriculture and priority-sector teams should use the presence of Nabard, Sidbi and Exim Bank to define post-harvest infrastructure and credit-access pilots that can be scaled across PSBs after the conclave.
• Credit card and global capability centre tracks should be converted into specific workstreams: who will lead, which PSBs will pilot, and what adoption timeline will be reported back to DFS.