PSB Confluence 2026 Maps Next Growth Phase for Public Sector Banks

JSW Group CFO Seshagiri Rao MVS contributed industry perspectives on supporting the investment cycle, giving participating institutions a view of financing requirements from the corporate side.

India's public sector banks and financial institutions are looking at their next phase of growth from a position of greater financial strength, with PSB Confluence 2026 bringing senior bankers, government officials and industry experts together to discuss deposits, younger customers, investment financing and new business opportunities.

Organised by the Department of Financial Services under the Ministry of Finance, the two-day Confluence has been built around seven themes that address changing priorities across banking, credit and financial inclusion. Union Finance and Corporate Affairs Minister Nirmala Sitharaman addressed the first day along with the Secretary of the Department of Financial Services, with discussions focused on turning ideas into strategies that can be implemented and expanded across institutions.

Lower NPAs Give Banks More Space for the Next Reform Phase

Sitharaman pointed to the historically low level of Non-Performing Assets as an important source of strength for the banking sector, creating a stronger foundation for banks to pursue reforms and support new areas of economic activity. The seven themes selected for the Confluence, she said, carry significance for the future direction of banking, financial inclusion and availability of credit.

Four themes received detailed attention on Day 1: Deposit Mobilisation, Banking for Youth, Supporting the Investment Cycle and Global Capability Centres. Discussions on deposits examined how banks can deepen relationships with customers and strengthen their deposit base, while the investment-focused sessions looked at financing solutions and institutional capabilities needed as businesses and infrastructure projects generate fresh demand for capital.

JSW Group CFO Seshagiri Rao MVS contributed industry perspectives on supporting the investment cycle, giving participating institutions a view of financing requirements from the corporate side.

Young Indians Could Reshape Banking Products and Services

With 29% of India's population between the ages of 15 and 29, Sitharaman said banking services need to reflect the expectations of a generation whose financial habits, career paths and interaction with technology can differ sharply from those of older customers. This creates opportunities for banks to rethink how they connect with young people across savings, education, entrepreneurship and career-related financial needs.

The discussions explored the use of Mera Yuva Bharat, or MY Bharat, as a channel for expanding financial engagement among young Indians. The Department of Youth Affairs platform has more than 2.60 crore registered users and a broad outreach network, giving banks a potential route to improve awareness of education finance, entrepreneurship opportunities, internships and careers in financial services.

MY Bharat CEO Dr. Priyanka Shukla shared perspectives on youth outreach, while the broader discussion examined how public sector banks can build propositions that feel relevant to young customers rather than simply adapting existing products.

GCC Growth and New Credit Opportunities Enter the Banking Agenda

India's expanding Global Capability Centre ecosystem formed another major part of the first-day programme, with GCC enterprise transformation expert Tanay Kediyal discussing how the sector is evolving. Public sector banks and financial institutions are examining where they can participate in this growing ecosystem and what capabilities may be needed to serve businesses, employees and related economic activity.

The Department of Financial Services Secretary asked institutions to anticipate new opportunities, learn from successful approaches across the banking system and use their combined experience to support India's next stage of economic growth. The emphasis is on producing practical outcomes rather than keeping the Confluence limited to broad discussions.

Day 2 will turn to Agriculture and Horticulture Value Chain Infrastructure, Priority Sector Lending and Reimagining the Credit Card Business. The seven thematic groups will then present actionable strategies and innovative solutions developed through the discussions.

PSB Confluence 2026 comes as public financial institutions prepare for changing customer expectations and new patterns of investment, employment and credit demand. The ideas emerging from the event are expected to help strengthen institutional competitiveness while supporting India's wider economic ambitions and the Viksit Bharat 2047 vision.