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Informist, Monday, Aug. 17, 2026

 

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--Sitharaman: To soon announce high-level banking committee 
--CONTEXT: Finance Minister Sitharaman speaking at PSB Confluence 
--Sitharaman:Committee to take up issues, recommendations from PSB Confluence 
--Sitharaman: Committee to give roadmap for bks role in Viksit Bharat goal
--Sitharaman: Have to rapidly work on high-level banking committee report
--Banking secy: PSU banks must continue to strengthen competitiveness 
--CONTEXT: Banking secy Lohia speaking at PSB Confluence 
--Banking secy:PSU bks must strengthen balance sheet, tech to beat competition 
--Banking secy:PSU bks must up deposit pdts to address changing savings plans 
--Banking secy:Have to examine how PSU bks can help global capability centres 
--Banking secy: PSU bks must attempt to fulfill priority sector lending aim 
--Banking secy: PSU bks must reshape credit card ops keeping in mind risks 
--Banking secy: PSU bks must reshape credit card ops to address opportunities

 

NEW DELHI - The finance ministry will soon announce a high-level committee on banking to lay down the roadmap for resilient banks that will support India's Viksit Bharat goals, Finance Minister Nirmala Sitharaman said Monday. Sitharaman, however, did not specify how soon the panel could be expected to be announced. "I am keenly looking forward (to the committee) because once the committee gives its input, it is for us to rapidly move in that direction," Sitharaman said at the inaugural address of PSB Confluence event here. 

 

At the event, public sector bank officials will hold extensive discussions on seven topics--deposit mobilisation, banking for youth, supporting investment cycle, global capability centres, agriculture, priority sector lending and reimagining credit card buisness. Discussions at the event will help prepare reports for the committee to take up and deliberate, Sitharaman said.

 

 

The Budget for the financial year 2026-27 (Apr-Mar) had proposed setting up a high-level committee on banking to comprehensively review the sector and align it with the country's growth goals while safeguarding financial stability, inclusion, and consumer protection. The panel is also likely to look into the possibility of merging certain public-sector banks to form even larger banks, the official said. It will evaluate the overall operations and focus area of each bank and, after analysing the prospects, give its suggestions on the roadmap to create larger state-owned banks, Informist had reported earlier.  

 

Sitharaman did not divulge more information on the terms of reference for the panel or the members who are expected to be part of it. According to her, "There couldn't have been a better time to talk about banking for Viksit Bharat, especially for the time that all of you are a part of." The PSU banks' balance sheets are healthy with record-low non-performing asset ratios. "There cannot be a better position of strength with which you can take on reforms," she said. 

 

Once the committee presents the report, the sector must rapidly work on the suggestions to have globally competitive banks, she said.

 

According to Banking Secretary Sanjay Lohia, who was also addressing the inaugural session, it is imperative for public sector banks to sustain the current momentum, especially as competition is becoming sharper. "Technology is reshaping business models, customer experiences are evolving, and new areas of economic activity are emerging rapidly," he said. 

 

Therefore, state-owned banks must continue to strengthen their competitiveness, growth within the domestic financial landscape, and against evolving global benchmarks, he said. 

 

"This will require the institutions to anticipate opportunities, deepen sectoral expertise, and continuously adapt their capabilities, products and business models," he said. "Financial institutions also have an important role where specialised expertise and financing structures can complement the scale and reach of banks," he also said. 

 

Deposit mobilisation is fundamental to sustainable economic growth, Lohia said. As household savings preferences change, banks need to strengthen their deposit base through customer privacy, convenience, consistency in service, product innovation, and sustained customer relationships, he said. 

 

It will be equally important for banks to upgrade as India's gap in increasing the digital population will shape the future of savings, borrowings, investments, and financial services. "It is our responsibility to facilitate the reach of banking to our youth, both in terms of opening bank accounts, making loans available for educational purposes, and for starting new ventures," he said.

 

The secretary also said supporting India's investment cycle requires institutions to anticipate new financing opportunities and have the appraisal capabilities and financing structures to support them, including appropriate pertinent sources of funding. "Global capability centers similarly represent an emerging ecosystem of opportunities across infrastructure, entering businesses, and employment. We have to examine how banks can facilitate the growth of GCCs in the country," he said. 

 

Lohia also said reimagining the credit card business for banks reflects another area where customer behavior, technology, and competition are changing rapidly. Public sector banks need to examine how they can build stronger propositions in credit card business while maintaining responsible underwriting, customer protection, and appropriate risk controls, he said. "Banks cannot grow their customer base and CASA deposits without a strong credit card facility," he added.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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