State-run banks are proactively examining the viability of establishing more joint ventures among themselves aimed at boosting business and operational efficiency. This initiative is inspired by the success of a common property listing and e-auction portal, which has facilitated the auction of over 100,000 seized properties in the past 11 months.

A four-member committee, comprising senior executives from prominent public sector banks (PSBs) such as Bank of India, Union Bank, and Central Bank of India, has been constituted to assess the capital requirements for these joint ventures. Sources within the banks have revealed that this panel was established in June 2023.

These movements are integral to the ‘Enhanced Access & Service Excellence (EASE)’ reforms agenda initiated by state-run banks. The committee will also investigate specific strategies, such as the Re-KYC project pioneered by the Bank of Maharashtra. This project focuses on periodic re-verification of customer information and evaluates the feasibility of scaling such initiatives through collaborative efforts.

According to one bank executive, some of the collaborative strategies—including a unified collection firm to recover retail and MSME loans below ₹5 crore—are already in the works. “Some of these initiatives will be pursued under the PSB Alliance, while we may also consider establishing additional ventures based on demand,” the executive elaborated.

Efforts are also underway to explore doorstep banking services and develop a cloud infrastructure for PSBs to enhance operational efficiency.

The Bank Asset Auction Network (BAANKNET), which has facilitated the auction of properties, is a key component powered by the PSB Alliance. This collaborative endeavor aims to deliver customer-oriented services across all participating banks.

In a review meeting involving PSBs in June 2025, Finance Minister Nirmala Sitharaman emphasized the importance of banks proactively identifying emerging sectors for commercial growth over the next decade. She advocated for deeper corporate lending in productive sectors while maintaining strong underwriting and risk-management standards.

Earlier this month, the Indian Banks’ Association (IBA) chief executive Atul Goel highlighted that with the implementation of Ease 7.0 in FY24-25, public sector banks have significantly advanced their readiness for generative artificial intelligence. This includes pilot use cases, enhanced data governance and analytics, and adoption of cloud technologies for scalable operations.

Goel further explained that the aim is to enable digital operating models that prioritize cost efficiency and quality in banking services.

According to an IBA report, the reform agenda under EASErise for FY26 will concentrate on strengthening the risk-management systems of PSBs. This enhancement will improve their capacity to absorb economic shocks and uphold overall financial stability.

BAANKNET and other various initiatives signify a strategic shift towards collaborative business models in the banking sector, fostering an environment of innovation and shared resources.

As these developments unfold, the focus remains on enhancing user experience while ensuring compliance with regulatory norms and addressing customer needs more effectively.

The banking sector’s embrace of technology and strategic partnerships is expected to yield significant improvements in service delivery and operational performance. This reflects a broader trend in the financial industry towards innovation and efficiency.

In conclusion, the exploration of joint ventures among state-run banks marks a crucial step in elevating their operational capabilities. By leveraging successful initiatives and focusing on strategic collaborations, these banks aim to navigate future challenges while optimizing customer service.