Banking for Viksit Bharat: Govt to soon set up high-level panel as sector sees improved asset quality, says Sitharaman

Union Finance Minister Nirmala Sitharaman on 17 August said the Centre will soon constitute a high-level panel on ‘Banking for Viksit Bharat’, as was proposed in the Budget speech earlier this year, PTI reported.

“We expect the announcement of the high-powered committee to look into the banking sector… soon the committee will be announced,” Sitharaman said at the PSB Confluence 2026 (Public Sector Banking) in Delhi.

High-level committee: What to expect?

As per Sitharaman, the committee will submit its thoughts and recommendations to the government.

In the Budget, ‘Banking for Viksit Bharat’ was proposed as a means to conduct comprehensive review of the sector and align it with India’s next phase of growth, the report added.

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“I propose setting up a ‘High Level Committee on Banking for Viksit Bharat’ to comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection,” she had stated in February.

‘Expect bankers to play key role in shaping framework’

Addressing the gathering, she said the committee would examine recommendations emerging from the conclave for its suggestions, with bankers and other stakeholders expected to play a key role in shaping the banking framework and next phase of reforms, as per an ANI report.

The finance minister also highlighted that non-performing assets (NPAs) of banks are at their lowest level ever, providing a stronger foundation for the banking sector to undertake further reforms and support economic growth.

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Stressing the significance of the conclave, Sitharaman said, “We are in 2026, so less than or short of 20 years is what we have before us.”

“There couldn’t have been a better time to talk about banking for Viksit Bharat, especially for the journey that all of you have gone through, come out of it without the recognition of difficulties and coming out towards the root of reform,” she added.

Seven themes under discussion — Check here

Sitharaman added that the Department of Financial Services (DFS) had worked on seven themes that would be important for taking the banking and financial sector forward. The themes of discussion are — banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value chain infrastructure, priority sector lending and reimagining credit card business.

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According to the minister, the DFS, for the first time during her tenure, had prepared detailed research documents on all seven themes selected for discussion at the meeting. She singled out the document on youth as particularly striking, noting that it analyses India’s young population across different age groups and life stages.

She pointed out that nearly 29% of India’s population falls in the 15-29 age group, and said banks must factor this demographic profile into their planning and strategy.

“I must credit the DFS for having worked on the seven different topics that shall be important to take the banking and financial sector forward,” Sitharaman added.

The minister further stressed that the recommendations emerging from the two-day PSB conference would provide important inputs for the proposed high-powered committee on banking reforms.

(With inputs from Agencies)