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Informist, Wednesday, Feb. 25, 2026

 

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--Sitharaman on pvt sector capex: Want to hear from industry what they want
--Sitharaman: Govt to soon finalise terms of reference for banking committee 
--Sitharaman: No better time than present to talk about what next for banks 
--Sitharaman: Working on terms of reference for committee on banking sector 
--Sitharaman: Indian agri stack to be next UPI-like revolution 
--Sitharaman: India's farm sector going through rapid changes 
--Sitharaman: Goal is to remove tariff wall but can't harm own industry 
--Sitharaman: Domestically, Indian economy fine 
--Sitharaman: Econ moving fast, moving well 
--CONTEXT: Sitharaman speaking at Business Standard Manthan in Delhi 
--Sitharaman: All engines of Indian econ fully functioning

 

NEW DELHI – Finance Minister Nirmala Sitharaman Wednesday said that the finance ministry is working on terms of reference for committee on banking sector and they will be finalised soon. "I'm not here to pass my view on to the committee, the committee has to do its own thinking and the terms of reference will be coming out soon," she said at the Business Standard Manthan - 2026.

 

Now is the opportune time to set up a committee to chalk out the future of the banking sector, she said. "Post the twin balance sheet problem, in the last 10 years, the Indian banks have come out doing remarkably well. Any indicator, net interest margin, or the provisioning or the profit, or professional running, credit, on each one of them they have stood out. In the last year, public sector banks have performed slightly better than private sector banks," she said.

 

Sitharaman said the "high-level committee on banking for Viksit Bharat" will guide in ensuring that there is no shortage of funds, no deposit shortage and that everybody gets banking facility. "So, from a position of strength, we're asking a committee to look at all this, with that deadline of 2047," she said. There is no better time than present to talk about what is next for Indian banks, the finance minister said. 

 

In the Budget for 2026-27 (Apr-Mar), Sitharaman proposed setting up a "high level committee on banking for Viksit Bharat" to comprehensively review India's banking sector and align it with the country's growth goals while safeguarding financial stability, inclusion, and consumer protection. "The Indian banking sector today is characterised by strong balance sheets, historic highs in profitability, improved asset quality and coverage exceeding 98% of villages in the country," Sitharaman had said. 

 

The Indian economy is moving fast, moving well, and all engines are fully functioning, Sitharaman said. "Indicators which are emanating from the economy actually strengthen what has been said in the Budget," she said. The Indian economy is projected to grow 7.4% in the current financial year, as per the government's first advance estimate, higher than 6.5% growth in FY25.

 

Domestically, the economy is fine, Sitharaman said. But there are challenges such as global uncertainties which are beyond India's control but have the power to affect the economy, the finance minister said. "To overcome global uncertainties, we have done trade agreements. We are also making sure taxation-related agreements are updated and countries are coming to align with what India offers." 

 

Sitharaman said the government's goal is to "completely remove the sphere of tariff wall" but it can't harm own industries in a rush to compete. Asked about the lagging private sector investment, Sithraman said she would want to hear from the industry on what they want. "We brought down the corporate (tax) rate. Post that there was COVID, it last till 2023. But I want to understand, we are willing to do," the finance minister said.

 

India's agriculture sector is very critical and is going through rapid changes, Sitharaman said. "Everything that is being done for the agriculture is done with an intent that it becomes strong, it becomes robust." The agri stack created by the agriculture ministry will be the next Unified Payments Interface-like big revolution, Sitharaman said. With the fertiliser and agriculture ministries working together, it will become clear how much fertiliser is required by the sector and how much is actually being used for farming.  End

 

Reported by Sagar Sen and Shubham Rana

Edited by Vandana Hingorani

 

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