Finance Minister Nirmala Sitharaman on Monday called on banking leaders to submit recommendations on reforms in the banking sector as the government prepares to constitute a high-powered committee to examine the sector’s role in achieving the vision of Viksit Bharat 2047.
Addressing the Public Sector Banks (PSB) Conclave 2026, Sitharaman said the government would soon announce the high-powered committee on public sector bank reforms. The recommendations and outcomes of the two-day conclave will be placed before the committee, she said.
She said the committee would examine the recommendations emerging from the conference and suggest measures to strengthen the banking framework in line with India’s long-term growth ambitions.
Highlighting the improved health of the banking sector, Sitharaman said non-performing assets (NPAs) are currently at their lowest-ever levels, providing a stronger foundation for further reforms and supporting economic growth.
“We are in 2026, so less than or short of 20 years is what we have before us,” she said, underlining the importance of preparing the banking sector for India’s development journey towards 2047.
Sitharaman said the Department of Financial Services (DFS) had identified seven key themes for discussions at the conclave. These include banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value-chain infrastructure, priority sector lending, and reimagining the credit card business.
The Finance Minister said the DFS had, for the first time during her tenure, prepared detailed research documents on the themes selected for discussion.
She particularly highlighted the document on youth, which analyses India’s young population across different age groups and stages of life.
Sitharaman said nearly 29 per cent of India’s population is in the 15-29 age group, and urged banks to factor the country’s demographic profile into their planning and strategies.
She said the recommendations emerging from the two-day PSB conference would provide important inputs to the proposed high-powered committee.
With the banking sector having undergone significant reforms and NPAs at historically low levels, Sitharaman said the focus should now be on preparing banks to meet the evolving requirements of the Indian economy and contribute effectively to India’s long-term development goals.
-ANI
