Govt To Announce High-Level Committee On Banks This Month, Says Nirmala Sitharaman
· Free Press Journal
The government is set to announce the members of a high-level committee on banking soon, with Finance Minister Nirmala Sitharaman indicating that the panel could be constituted as early as this month.
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Speaking at the opening of the two-day PSB Confluence 2026 in New Delhi on Monday, Sitharaman said the government would move swiftly once the committee submits its recommendations. She stressed that the panel’s findings would be followed by prompt action.
Banking sector’s role in Viksit Bharat
The proposed committee was announced by Sitharaman in the Union Budget 2026-27. The government plans to use the panel to examine how the banking sector can better align itself with India’s long-term economic ambitions and contribute to the goal of a developed India, or Viksit Bharat, by 2047.
PM Modi Sets 2047 Goals: 50 Fortune 500 Companies, Top 5 Global Bank, 100 GW Nuclear PowerSitharaman said the committee would specifically examine the role banks need to play in achieving these objectives. She noted that the 2047 target is approaching and that the sector needs to prepare accordingly.
Although announced in the Budget, the committee has not yet been formally constituted. A senior Finance Ministry official indicated that its formation is expected during August.
Strong bank balance sheets create room for reforms
The Finance Minister also pointed to the improved financial health of Indian banks as a reason to push ahead with structural reforms. She highlighted the significant decline in non-performing assets (NPAs), saying banks are currently in a stronger position to undertake changes.
Public sector banks have also strengthened their profitability. Collectively, they posted a record net profit of more than Rs 1.98 lakh crore in FY26, according to the information shared at the event.
The upcoming committee is therefore expected to examine how the banking system can support India's future growth requirements while building on the sector's improved asset quality and financial performance.