The two-day PSB Confluence 2026 concluded on Tuesday with Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) identifying actionable strategies across seven key themes to strengthen the banking and financial sector and support India’s growth towards Viksit Bharat 2047.
The conclave, organised by the Department of Financial Services (DFS), Ministry of Finance, brought together senior leadership of PSBs and PFIs, government officials and domain experts for discussions on emerging priorities and challenges facing the financial sector.
Addressing the concluding session, Union Finance and Corporate Affairs Minister Nirmala Sitharaman called upon PSBs and PFIs to translate the deliberations into tangible outcomes and build on their institutional strengths to meet India’s evolving economic requirements.
Focus on banking for youth
FM Sitharaman called on PSBs to launch a focused, month-long campaign for young people above 16 years from October 2, 2026, in coordination with the Indian Banks’ Association (IBA).
The initiative aims to strengthen banks’ engagement with young customers and establish long-term relationships as they move through different stages of their financial lives, including education, employment, entrepreneurship, investment and wealth creation.
A common online portal or application for youth is also envisaged to provide easy access to information on banking services and opportunities related to education, skilling and entrepreneurship. The initiative is expected to be supported by physical outreach programmes at colleges, universities, skill institutions and other campuses.
Banks urged to strengthen priority sector lending
The Finance Minister also emphasised the importance of Priority Sector Lending (PSL), urging PSBs to closely monitor shortfalls against individual targets and sub-targets.
Banks were encouraged to undertake granular monitoring, identify emerging gaps at an early stage and adopt appropriate business strategies to ensure productive credit reaches the intended beneficiaries.
The discussions on the second day also focused on strengthening financing across agriculture and horticulture value chains, including Farmer Producer Organisations (FPOs), storage, processing, logistics and market linkages.
Credit card business and digital opportunities
The Confluence also examined ways to reimagine the credit card business, with discussions focusing on digital onboarding, greater cross-selling among existing customers and opportunities arising from the integration of RuPay and UPI.
Real-world perspectives were shared by CA Arvind Agarwal, Director, VNR Group, on agriculture and horticulture value chain infrastructure, and Sanjay Mehndiratta, Director, Toy Zone, on Priority Sector Lending.
The second day concluded with debriefing sessions during which thematic groups presented actionable strategies and innovative solutions emerging from discussions across all seven themes.
Secretary, Department of Financial Services, said the Confluence had helped sharpen priorities and identify clear areas for action. PSBs and PFIs will now be required to take forward these strategies through defined ownership and realistic timelines, while successful institutional models may be considered for wider adoption.
The government said the outcomes of PSB Confluence 2026 would be taken forward by the concerned institutions through follow-up and implementation. PSBs and PFIs are expected to play a key role in deepening financial inclusion, financing emerging opportunities and supporting India’s next phase of economic growth as the country moves towards the Viksit Bharat 2047 goal.
