After strengthening India’s banks, the government prepares to constitute a high-powered committee to comprehensively review the sector and align it with India’s next phase of growth, which will also focus on banking for youth, Union finance minister Nirmala Sitharaman said on Monday.
Addressing the bankers at the conference, Sitharaman said, “Sooner the committee will be announced and the material that you are producing from [the] two-day discussions on the basis of well-researched set of documents — which have been shared with you in advance — will hopefully provide the substantive meat for the committee to also look at. DFS is an arm of the finance ministry. In her budget speech on February 1 this year, Sitharaman said India’s banking sector is now characterised by strong balance sheets, historic highs in profitability, improved asset quality and coverage exceeding 98% of villages in the country. “Viksit Bharat 2047 is actually not far away. We are in 26 [2026] so, less than or short of 20 years that’s what we have before us,” she said.
Because once the committee gives its recommendations, it is for the bankers to rapidly implement them, the finance minister said the ideas generated in the two-day conference would be valuable for the committee.
“At this juncture, we are well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of this sector,” he said. Giving credit to the department of financial services (DFS) for preparing thematic documents on seven different topics, the finance minister said they are “very critical for us” to discuss. She said the “content materials for each of them are well researched, bringing in the best practices from around the globe” and also highlighting the need to discuss on these issues to take Indian banking sector forward.
Speaking on the seven themes of the Public Sector Bank (PSB) Confluence 2026 in New Delhi, the minister said, the two-day “intensive” discussions are happening at time when “the announcement on the high-powered committee to look into banking for Viksit Bharat” is expected.
