PSU banks ready to play a larger role towards Viksit Bharat 2047: DFS Secretary

New Delhi, Sep 13 (PTI) Public sector banks (PSBs) have transitioned from a phase of survival and stability and are now positioned to play a larger role as champions of growth, innovation, and leadership in the journey towards Viksit Bharat 2047, Financial Services Secretary M Nagaraju has said.

Addressing the two-day PSB Manthan, which concluded on Saturday, Nagaraju also highlighted the need for PSBs to aspire to global competitiveness, strengthen governance and operational resilience, and expand their role as sectoral champions across both traditional and emerging industries.

PSB Manthan 2025, organised by Department of Financial Services (DFS), themed around reimagining public sector banking for a developed India. The event brought together senior leadership of public sector banks, regulators, industry experts, academicians, technologists, and banking practitioners.

The program featured discussions on customer experience, governance, innovation, credit growth, risk management, and technology modernization.

Key suggestions included adopting next-generation technologies, building common infrastructure, and designing hyper-personalized products, the finance ministry said in a statement on Saturday.

The discussions stressed the importance of modernising PSB technology by moving beyond legacy systems to agile and interoperable platforms capable of delivering seamless digital services, enhancing cyber resilience, and integrating effectively with India's digital public infrastructure, it said.

It was further suggested that Public Sector Banks put in place robust governance frameworks for Artificial Intelligence (AI), aimed at strengthening model risk management, nurturing responsible AI adoption, and instituting appropriate safeguards against emerging risks, it said.

The deliberations also underscored the importance of engaging with technology partners who ensure openness and interoperability, thereby avoiding vendor lock-in and enabling long-term flexibility and innovation, it added.

Speakers highlighted the need for collaboration with fintechs, academia, and entrepreneurs to enhance public sector banks' capabilities and accelerate innovation.

They reaffirmed the banks' central role in financial inclusion and national priorities, particularly in sectors like agriculture, MSMEs, housing, and infrastructure, as well as emerging sectors such as renewable energy and digital industries. PTI DP MR