Union Finance Minister Nirmala Sitharaman has signaled a major upcoming shift in India's financial sector, calling on Public Sector Banks (PSBs) to prepare for a new wave of banking reforms designed to align with the vision of a "Viksit Bharat" (Developed India). Speaking on the health and future trajectory of the banking sector at PSB Confluence 2026, FM Sitharaman stated that the official announcement of a high-powered committee on banking for Viksit Bharat is expected this month.
This panel will comprehensively deliberate on the critical role the banking sector must play to fund and facilitate India's next phase of rapid economic expansion. FM Sitharaman emphasized that once the committee's report is published, PSBs will be expected to pivot their strategies and move decisively in the direction of its recommendations.
The Finance Minister noted a historic milestone, pointing out that Non-Performing Assets (NPAs) are currently at their lowest levels ever recorded in Indian banking history. This cleanup has resulted in clean balance sheets, decadal highs in profitability, and vastly improved asset quality across public lenders. ''Once committee is ready with its views, we'll be ready to press the pedal on the Indian economy,'' said FM Sitharaman.
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