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The Department of Financial Services hosted the two-day PSB Confluence 2026 in New Delhi on 17-18 August 2026.
About 125 senior representatives of public sector banks, public financial institutions and the Indian Banks' Association took part.
Deliberations covered seven themes, from deposit mobilisation and priority sector lending to global capability centres and the credit card business.
Finance Minister Nirmala Sitharaman said historically low NPAs put public sector banks in a position of strength for the next phase of reforms.
The Centre will set up a high-powered committee on banking for Viksit Bharat, and the Confluence's conclusions will be fed into it.
A public sector bank is one in which the Government of India holds a majority stake. Public financial institutions are specialised development institutions serving sectors that ordinary commercial lending underserves — NABARD for agriculture and rural development, SIDBI for micro and small industries, and NHB for housing finance. The Indian Banks' Association is the industry body of banks operating in India. A DFS conclave that puts all three groups in one room is how the Ministry of Finance converts scattered supervisory conversations into a common reform agenda.
Simple Analogy: The owner calling in every branch of the family business at once, before writing the new rulebook.
General Awareness > Banking Awareness > Reforms, institutions and priority sector lending
General Awareness > Economy
General Awareness > Current Affairs
GS Paper 3 > Indian Economy > Banking sector reforms
What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
Answer: To aim at faster resolution of stressed assets of 50 crore or more which are under consortium lending
What is the importance of the term "Interest Coverage Ratio" of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:
Answer: 1 and 2 only
A bank in which the Government of India holds a majority shareholding
RBI-mandated direction of a share of bank credit to sectors such as agriculture, micro and small enterprises, education, housing and weaker sections
An offshore centre set up by a multinational to run technology, analytics or business operations for the parent group
A loan on which interest or principal has been overdue, normally for 90 days or more