Finance Minister Nirmala Sitharaman has confirmed that the government will officially announce a high-powered committee on banking for Viksit Bharat this month. Speaking at the PSB Confluence 2026, Sitharaman stated that "the intensive discussions of today and tomorrow come at a time when we expect the announcement on the high-powered committee to look into banking for Viksit Bharat. Soon the committee will be announced." According to The Times of India, a senior finance ministry official indicated that the high-level panel may see the light of the day by end of this month. The minister emphasized that "the ideas are going to be from the field, from the executioners, as it were and once the High-Level Committee on Banking for Viksit Bharat forms its views and recommendations, we'll be ready to rev up the Indian economy." This represents a significant milestone in India's banking reform journey, with the committee's findings expected to shape the future trajectory of public sector banking. Sources in the government indicate that the committee is likely to be set up as soon as this month, providing concrete timeline expectations for the banking sector's transformation.
The finance ministry's Department of Financial Services (DFS) has convened a two-day confluence of public sector banks (PSBs) and public financial institutions (PFIs) in New Delhi to discuss next-generation reforms for the banking sector. The conclave provides a platform to share ideas and best practices on seven thematic areas: deposit mobilisation, banking for youth, supporting the investment cycle, supporting Global Capability Centres (GCCs), agriculture & horticulture value chain infrastructure, innovation in the credit card business, and priority sector lending. As per The Times of India, the finance minister noted that "the DFS has spent time looking into the details of what each of these seven topics should be focusing on, so the content material on each of them is well researched—bringing in the best practices from around the globe." The discussions are being held with the benefit of a set of well-researched documents that had been shared with participants ahead of the discussions. The first day covered four of the seven themes—deposit mobilization, banking for youth, supporting the investment cycle and global capability centres (GCCs), while the remaining three themes will be addressed on Day 2. Speaking at the PSB Confluence, Sitharaman said "the outcome of Monday's discussions should provide substantial data for the high-level committee."
Finance Minister Nirmala Sitharaman stressed the urgent need for banks to focus particularly on India's young population, noting that 29% of Indians are in the 15-29 age group. Speaking at the PSB Confluence 2026, Sitharaman called on banks to expand access to financial services for young people, including education loans, entrepreneurship finance and investment products. As reported by The Hindu BusinessLine, she emphasized that "banks need to expand access to financial services for young people, including education loans, entrepreneurship finance and investment products." The discussions examined ways to develop banking propositions responsive to the aspirations and financial needs of young people. The participants also explored the potential of leveraging Mera Yuva Bharat (MY Bharat), a national platform of the department of youth affairs under the ministry of youth affairs and sports, for wider youth engagement. With more than 26 million registered users and an extensive outreach network, MY Bharat can help strengthen young people's connection to the formal financial system and enhance awareness of opportunities in education finance, entrepreneurship, internships, and careers in the financial sector. This youth-focused approach represents a critical component of India's banking strategy as the country approaches its 2047 target, requiring banks to capitalize on the demographic dividend through targeted financial inclusion initiatives.
Finance Minister Nirmala Sitharaman highlighted a historic milestone in Indian banking, noting that Non-Performing Assets (NPAs) are currently at their lowest levels ever recorded in Indian banking history. Addressing the conference, Financial Services Secretary Sanjay Lohiya confirmed that gross NPAs have declined from a peak of 14.6% in March 2018 to a record low of 1.93% in March 2026, while net NPAs fell from 8% to 2.39% during the same period. As reported by The Hindu BusinessLine, Sitharaman stated that "the NPAs are at the lowest ever Indian banking has seen, and therefore, there cannot be a better position of strength from which to drive reforms." This cleanup has resulted in clean balance sheets, decadal highs in profitability, and vastly improved asset quality across public lenders. The minister's comments suggest that the upcoming committee recommendations will be instrumental in accelerating India's economic growth trajectory through enhanced banking sector performance.
The committee announcement comes after Finance Minister Nirmala Sitharaman proposed setting up a 'High Level Committee on Banking for Viksit Bharat' in this year's Budget. In her Budget speech on February 1, 2026, Sitharaman stated that the committee would 'comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection'. As per The Times of India, the minister announced that "the high-level committee was announced by Sitharaman in budget 2026-27 to review the sector's alignment with India's growth goals." The minister's Budget proposal outlined the committee's mandate to comprehensively review the banking sector and align it with India's next phase of growth, positioning it as a critical component of the country's economic development strategy. Financial Services Secretary Sanjay Lohiya outlined the importance of translating the deliberations into concrete and implementable outcomes, emphasizing that PSBs and PFIs need to anticipate emerging opportunities, strengthen institutional capabilities, draw upon successful approaches across institutions and leverage their collective experience to support the next phase of economic growth. Lohia observed that PSBs need to examine how they can build stronger propositions in credit card business while maintaining responsible underwriting, customer protection, and appropriate risk controls, adding that "banks cannot grow their customer base and CASA deposits without a strong credit card facility."
