The government is likely to convene a conclave for state-run banks later this month to formulate strategy and road map to build globally competitive lenders keen to ready the banking system for Viksit Bharat 2047. According to reports from The Economic Times, this move comes close on the heels of finance minister Nirmala Sitharaman's announcement in her budget speech for FY27 of setting up a 'High Level Committee on Banking for Viksit Bharat'. The conclave will also look to build a consensus on strengthening customer-centric initiatives across all 12 state-run lenders.
As reported by The Economic Times, the conclave will focus on customer-centricity and scaling credit initiatives. Banks will discuss future strategy initiatives and operational interventions that could help them scale up and expand credit. According to an official requesting anonymity, the idea is to devise a strategy for execution of the key central themes identified during PSB Manthan in September 2025. Some of the key themes identified in PSB Manthan event included strengthening asset quality, robust governance and resolution framework, and building globally competitive PSBs for Viksit Bharat 2047.
According to The Economic Times, in the first half of FY26, PSBs reported a net profit of ₹93,675 crore with gross NPAs declining to a multi-year low of 2.30%. After a review meeting in November 2025, the government advised banks to strengthen risk management, underwriting practices, and operational resilience to sustain profitability in an evolving financial environment. The government has already stated that it aims to have at least two PSBs among the world's top 20 by 2047.
As reported by The Economic Times, earlier this week, financial services secretary M Nagaraju said that India's credit-to-GDP ratio, currently at about 56%, remains among the lowest globally, with 300-350 million adults still outside the formal credit system. A bank executive noted that for a country of India's size and aspirations, there is a need for big banks to take higher risks and finance large projects. The initiative will also set the base for Ease 9.0 and the new benchmarks including collaborative banking, with the Enhanced Access and Service Excellence (EASE) reforms being a programme of the Department of Financial Services to improve PSBs.