India’s finance ministry prepares to convene top public sector bankers in New Delhi to accelerate reforms, including deposit mobilisation, wealth management, and rural finance, in a bid to support development goals and modernise state-run lenders.
India’s finance ministry is preparing to bring together top public sector bankers this week for a two-day conference in New Delhi aimed at shaping the next phase of reform for state-run lenders and other public financial institutions. According to Business Standard, the Department of Financial Services wants the gathering to focus on how banks can better support a “Viksit Bharat”, or developed India, with deposit growth, stronger credit flows and wider retail engagement among the main themes.
Deposit mobilisation is expected to dominate the discussions, reflecting a persistent gap between public sector banks and their private-sector rivals in attracting household savings. Participants are set to examine ways of drawing more money into the formal banking system, while also considering how lenders can support investment and expand credit to productive parts of the economy.
The conference will also look at a broader shift already under way in the state-owned banking system: a move beyond plain-vanilla lending into wealth and asset management. Punjab National Bank, Punjab & Sind Bank and Indian Bank are all setting up dedicated wealth and mutual fund businesses, while State Bank of India, Punjab National Bank and Canara Bank already have asset management operations through joint ventures. PNB says its wealth services include investment advice, portfolio management and tax planning, while its mutual fund arm is designed to help deepen customer relationships and widen access to investments. SBI and Canara Bank describe similar goals for their asset management businesses.
Rural finance is another major strand. The conclave is expected to address agriculture and horticulture by focusing on post-harvest infrastructure, market linkages and the rural value chain, areas where institutions such as NABARD play an important financing and development role. The priority-sector lending session will examine how formal credit can reach underserved borrowers more effectively, while a separate track will consider banking products aimed at younger customers.
Officials are also expected to discuss the development of global capability centre ecosystems and how the credit card business might be expanded and redesigned. The government says the themes were chosen because they can be translated into practical outcomes for households, businesses and the wider economy.
Around 125 senior executives are due to attend, including chairmen, managing directors and executive directors from public sector banks, along with leaders from NABARD, Exim Bank, SIDBI, the National Housing Bank, IIFCL and NaBFID. Finance minister Nirmala Sitharaman and minister of state for finance Pankaj Chaudhary are expected to address the meeting, alongside senior officials from the Indian Banks’ Association and the DFS.
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