New Delhi: Public sector banks (PSBs) are preparing to expand their role in India’s growth journey, moving beyond a period of survival and stability to become drivers of growth, innovation, and leadership, according to Financial Services Secretary M Nagaraju.

“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,” Nagaraju said at the conclusion of the two-day PSB Manthan on Saturday.

The event, organised by the Department of Financial Services (DFS), was held under the theme of reimagining public sector banking for a developed India. It brought together senior bank executives, regulators, technologists, industry experts, and academicians to discuss the future of public sector banking.

Discussions at the event focused on customer experience, governance, innovation, credit growth, risk management, and technology modernisation. Suggestions included adopting next-generation technologies, creating shared infrastructure, and designing hyper-personalised products, the finance ministry said in a statement.

Participants emphasised the importance of modernising PSB technology by moving away from legacy systems towards agile, interoperable platforms capable of delivering seamless digital services, strengthening cyber resilience, and integrating effectively with India’s digital public infrastructure.

The need for robust governance frameworks around Artificial Intelligence (AI) was also highlighted, particularly for managing model risk, enabling responsible adoption, and creating safeguards against emerging threats.

Speakers called for collaboration with technology partners that prioritise openness and interoperability, helping banks avoid vendor lock-in while promoting long-term flexibility and innovation. Engagement with fintechs, entrepreneurs, and academia was also seen as vital for enhancing PSB capabilities and accelerating innovation.

The deliberations reaffirmed the central role of public sector banks in advancing financial inclusion and supporting national priorities, with a focus on agriculture, MSMEs, housing, and infrastructure, as well as emerging sectors like renewable energy and digital industries.

BI Bureau