Finance Minister Nirmala Sitharaman on Monday said non-performing assets (NPAs) in the Indian banking sector have fallen to their lowest-ever level, placing banks in a stronger position to undertake the next phase of reforms.
Addressing the inaugural session of the two-day PSB Confluence 2026, Sitharaman said the significant improvement in banks’ balance sheets followed a challenging clean-up process and had strengthened their credibility.
She said the banking sector was now in a position to pursue reforms from a position of strength rather than crisis management.
The Finance Minister said the Department of Financial Services (DFS) had prepared detailed research documents for all seven themes selected for discussion at the confluence. She said this was the first time during her tenure that such detailed papers had been prepared for all the identified themes.
Highlighting the paper on youth, Sitharaman said it examined India’s young population across different age groups and stages of life. She noted that nearly 29 per cent of India’s population is in the 15-29 age group, and said banks need to factor this demographic profile into their planning and strategies.
The seven research papers, shared with participants ahead of the conclave, draw on global best practices and are aimed at facilitating concrete and actionable recommendations, she said.
The seven themes being discussed at the confluence are deposit mobilisation, banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value-chain infrastructure, priority sector lending, and reimagining the credit card business.
Sitharaman also linked the conclave to the government’s planned constitution of a high-powered committee on the role of banking in achieving the vision of Viksit Bharat.
She said the outcomes and recommendations emerging from the discussions would provide substantive inputs to the proposed committee as it examines the future role of the banking sector.
The Finance Minister urged participants to focus on practical and implementable ideas, stressing that bankers themselves would ultimately be responsible for taking forward the recommendations.
The conclave is aimed at identifying reforms and strategies to strengthen India’s banking sector and align it with the country’s long-term economic and development goals.
-ANI
