Public sector banks (PSBs) have long been integral to India’s banking system, catering to millions of customers and supporting economic development. However, the sector has faced significant challenges in recent years, including rising non-performing assets (NPAs) and the need for recapitalization. The government’s focus on banking reforms aims to enhance the efficiency and stability of PSBs.

In recent years, several measures have been implemented to strengthen PSBs, including mergers and the introduction of new technology. These reforms are aimed at improving governance, reducing NPAs, and enhancing the overall customer experience. The government’s capital infusion into PSBs has also bolstered their lending capacity, enabling them to support economic recovery post-pandemic.

The rise of digital banking has further prompted PSBs to adopt innovative technologies to remain competitive. Initiatives such as mobile banking apps and contactless payment systems are being introduced to meet changing consumer preferences. While challenges persist, the ongoing reforms in the public sector banking space hold promise for a more resilient and customer-centric banking system.