The Finance Ministry will host a two-day PSB Manthan beginning September 12, bringing together the top leadership of India’s 12 public sector banks (PSBs) to review recent performance and chart the next stage of reforms. The meeting will focus on strengthening digital banking, customer service, governance, and human resource practices, according to reports from Business Standard.
Objectives of the PSB Manthan
The primary aim of the PSB Manthan is to sustain momentum on the Enhanced Access and Service Excellence (EASE) agenda. Introduced after the first Manthan in 2017, EASE reforms emphasise digitisation, faster credit delivery, and stronger risk management.
Officials told Livemint that the upcoming session will also explore performance-linked incentives for employees, talent retention strategies, and enhanced collaboration between banks. The ministry is expected to use the event to set fresh benchmarks for service delivery and operational efficiency.
Strong Financial Backdrop
The timing of the Manthan comes against the backdrop of record earnings by state-owned lenders. Public sector banks collectively reported a profit of ₹1.78 trillion in FY25, a 26 percent increase from the previous year, according to ministry data.
The State Bank of India (SBI) alone contributed over 40 percent of the total, posting ₹70,901 crore in net profit. Punjab National Bank (PNB) recorded the highest growth rate among peers at 102 percent, while Punjab & Sind Bank followed with 71 percent growth.
In the first quarter of FY26, PSBs continued this momentum with a combined profit of ₹44,218 crore, marking an 11 percent year-on-year rise.
Building on Past Reforms
The upcoming session is the third major PSB Manthan since 2017. The last edition, held in April 2022, produced six working groups covering digitalisation, governance, and customer service reforms.
These efforts build on earlier initiatives such as the Gyan Sangam meetings in 2015 and 2016, which laid the foundation for large-scale consolidation in the banking sector. The reforms have since guided mergers of PSBs and the introduction of new governance frameworks.
“The Manthan reflects the government’s ongoing commitment to make public sector banks more competitive, technologically advanced, and customer-centric,” said a senior banking analyst quoted by Indian Masterminds.
Broader Economic Context
The event also comes at a time when the Reserve Bank of India (RBI) has adopted an accommodative stance, raising expectations of stronger credit growth. According to Informist Media, discussions may cover how PSBs can leverage lower interest rates to expand lending to small businesses and infrastructure projects.
Former banking leaders such as Arundhati Bhattacharya, former chairperson of SBI, are expected to participate as guest speakers, offering insights on external challenges and opportunities for India’s banking sector.
What to Expect
- Focus Areas: Digital banking, HR reforms, governance, performance-linked incentives
- Participants: Top leadership of all 12 public sector banks, Finance Ministry officials, and external experts
- Outcome: Policy directions for EASE 6.0 reforms, new targets for service efficiency, and potential structural adjustments
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Conclusion
The two-day PSB Manthan underscores the government’s strategy of continuous engagement with state-owned lenders. With record profits providing a strong foundation, the meeting is expected to accelerate digital innovation and governance reforms, ensuring PSBs remain central to India’s growth story.
