Govt to constitute high-powered panel to review banking sector, says Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman announced that the government will form a high-powered committee to thoroughly review and align India's banking sector with the country's next phase of growth, according to a speech at the Public Sector Bank (PSB) Confluence 2026 in New Delhi. The committee's formation comes after the successful strengthening of Indian banks and the discussion of seven themes at the two-day conference, including deposit mobilization, banking for youth, supporting investment cycles, global capability centers, agriculture and horticulture value chain infrastructure, credit card business re-imagining, and priority sector lending.

Sitharaman highlighted that India's banking sector boasts strong balance sheets, high profitability, improved asset quality, and coverage exceeding 98% of villages. In her budget speech, she proposed the establishment of a 'High Level Committee on Banking for Viksit Bharat' to evaluate the sector and ensure it aligns with India's growth path while maintaining financial stability, inclusion, and consumer protection.

The finance minister commended the Department of Financial Services (DFS) for preparing well-researched thematic documents on the seven topics, stating they are crucial for the discussions. Sitharaman urged participants to thoroughly review these documents and deliberate on the issues raised, emphasizing that the bankers will ultimately implement the measures to advance India's banking system.

She also noted that the ideas generated at the conference will be valuable for the committee, as the committee's recommendations will be implemented by the bankers.