EXPLORING THE ROLE OF PUBLIC SECTOR BANKS IN ECONOMIC DEVELOPMENT IN INDIA

Public sector banks (PSBs) play a crucial role in economic development by providing financial intermediation, facilitating capital formation, and promoting financial inclusion. This paper explores the role of PSBs in Indias economic development from 2018 to 2022, focusing on four major PSBs: State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Canara Bank. The paper examines the financial performance, credit growth, and economic impact of these banks during the specified period. Additionally, the paper evaluates the impact of government policies on the functioning of PSBs and their role in economic development. The findings of the paper suggest that PSBs have played a significant role in Indias economic development, particularly in terms of providing financial access to underserved sectors and promoting financial inclusion. However, PSBs face challenges related to asset quality, profitability, and efficiency. The paper concludes by emphasizing the need for continued reforms to strengthen PSBs and enhance their contribution to Indias economic development.