Overview
- Finance Minister Nirmala Sitharaman said the government will constitute a high‑powered committee on ‘Banking for Viksit Bharat’ and move quickly on its recommendations once they are submitted.
- The Department of Financial Services ran a two-day PSB Confluence that produced seven thematic papers focused on deposit mobilisation, banking for youth, the investment cycle, global capability centres, agriculture value chains, credit-card business redesign and priority sector lending.
- Public sector banks have stronger balance sheets after recent repairs with gross non-performing assets near 1.9% and record aggregate net profits in FY26, a condition officials say gives political and operational room for reforms.
- Sitharaman and DFS officials said the committee will draw on the Confluence’s practitioner inputs and research materials to design practical, actionable reforms although the panel’s membership has not yet been announced.
- Coverage and analysts suggest the committee could examine levers such as consolidation, eased entry or ownership rules and measures to boost deposits and retail card ecosystems, and observers will watch for fast policy moves following the panel’s report.