Finance Ministry likely to hold two-day PSB Manthan; top leadership of PSU banks to attend

The Finance Ministry is likely to hold a two-day PSB Manthan to brainstorm with the top leadership of public sector banks and unlock next-generation reforms, while continuing with the EASE journey, according to sources.

The two-day brainstorming session, beginning September 12, would see participation of top management of public sector banks (PSBs), they added.

The last such Manthan was held in April 2022, with the entire leadership of PSBs under the guidance of the Department of Financial Services (DFS) to take Enhanced Access & Service Excellence (EASE) reforms to the next level.

EASE is based on the recommendations made by PSB Whole Time Directors (WTDs) and senior executives in 'PSB Manthan' held in November 2017.

In the last manthan, six working groups were formed to look into the functioning of public sector banks (PSBs) and suggest ways to improve customer service, digitisation, HR incentives, corporate governance and collaboration.

The latest round of PSB Manthan would be held in the backdrop of PSU banks' cumulative profit rising to a record level of ₹1.78 lakh crore in the fiscal year ended March 2025, registering a growth of 26% over the previous year.

All 12 public sector banks had earned a total profit of ₹1.41 lakh crore in FY24.

The year-on-year increase in profit in absolute terms rose by about ₹37,100 crore in FY25.

Out of the total profit of ₹1,78,364 crore earned during FY25, market leader State Bank of India (SBI) alone contributed over 40% of the total earnings, as per the published numbers on stock exchanges. SBI logged a net profit of ₹70,901 crore in FY25, 16% higher than the previous fiscal (₹61,077 crore).

In percentage terms, Delhi-based Punjab National Bank reported the highest net profit growth of 102% to ₹16,630 crore, followed by Punjab & Sind Bank with a 71% rise to ₹1,016 crore.

Even the current financial year has started on a good note as far as PSBs are concerned. Led by State Bank of India (SBI), public sector banks cumulatively logged a record profit of ₹44,218 crore in the first quarter of the current fiscal, with a year-on-year growth of 11%.

All 12 PSBs together made a profit of ₹39,974 crore in the June quarter of FY25. The increase in profit in absolute terms was ₹4,244 crore.

Market leader SBI alone contributed 43% to the total earnings of ₹44,218 crore, as per the published numbers on stock exchanges.

It is to be noted that two rounds of 'Gyan Sangam' were held in 2015 and 2016, which led to many reforms in the banking and financial sector, including the privatisation of public sector banks and insurance companies.