DFS to hold PSB, PFI confluence on sector's road map for Viksit Bharat
The two-day conclave will focus on deposit mobilisation, credit expansion, rural value chains, wealth management and other next-generation reforms for public sector banks
 "DFS to hold PSB, PFI confluence on sector's road map for Viksit Bharat")
The finance ministry’s Department of Financial Services (DFS) will hold a two-day confluence of public sector banks (PSBs) and public financial institutions (PFIs) in New Delhi from Monday to discuss next-generation reforms for the banking sector. Charting the course for banking in a “Viksit Bharat” will be at the centre of the ‘PSB Confluence’, according to people aware of the matter.
The conclave will provide a platform to share ideas and best practices on deposit mobilisation, supporting the investment cycle and expanding credit. Deposit mobilisation is expected to be a key focus as PSBs continue to lag private peers in deposit growth. Participants are expected to discuss ways to attract a larger share of household savings into the banking system, one of the persons said.
The discussions come as PSBs expand beyond traditional banking into wealth and asset management to deepen retail relationships and capture a larger share of financial savings. The Punjab National Bank, Punjab & Sind Bank and Indian Bank are currently setting up dedicated wealth and mutual fund verticals. The State Bank of India, Punjab National Bank and Canara Bank already operate asset management businesses through joint ventures with respective partners.
Discussions on agriculture and horticulture at the conclave are expected to focus on strengthening rural value-chain infrastructure, including post-harvest facilities and market linkages. The priority-sector lending track will examine ways to extend formal credit to underserved segments, while the youth-focused track will consider banking products tailored to their needs.
The conclave will also examine the development of global capability centre ecosystems, as well as ways to expand and reimagine the credit card business. The government has said the thematic areas for the confluence were selected for their potential to translate institutional and policy interventions into measurable, people-centric outcomes.
The meeting is intended to move beyond discussions, with participating institutions expected to identify and exchange practical, actionable and time-bound initiatives that can be adopted across the banking ecosystem, the government said.
The event will bring together around 125 senior executives, including chairmen, managing directors and executive directors of PSBs, along with leaders of institutions such as the National Bank for Agriculture and Rural Development (Nabard), Exim Bank, Small Industries Development Bank of India (Sidbi), National Housing Bank, India Infrastructure Finance Company Ltd (IIFCL) and National Bank for Financing Infrastructure and Development (NaBFID). Union Finance Minister Nirmala Sitharaman and Minister of State for Finance Pankaj Chaudhary are expected to address the conclave. Senior officials from the Indian Banks’ Association (IBA) and DFS will also participate.