Mumbai, Feb. 22 -- Public sector banks (PSBs) are exploring the idea of setting up a company to build and share digital infrastructure in response to the rapid digital adoption in the banking sector because of the pandemic, two bankers aware of the matter said.

The lenders are looking to pool in resources to set up a Digital Banking Infrastructure Corp. to facilitate tie-ups with fintech companies and develop software for doorstep banking and co-lending, one of the bankers said on condition of anonymity.

The idea of setting up the company was discussed last week at a meeting with the secretary, financial services department. An internal committee has been set up under the Indian Banks' Association to work on the initiative.

The banks e...