Speaking at PSB Confluence 2026, Sitharaman said banks had emerged from a prolonged effort to repair their finances. She described a sector that was no longer focused mainly on managing crises and was now better placed to pursue reforms. The report did not provide an NPA figure.

The Finance Minister linked healthier bank balance sheets with the ambition of a developed India. She called on lenders to back larger projects and support investment by businesses building factories and infrastructure, rather than remain focused only on dealing with past losses.

At the two-day gathering, the Department of Financial Services presented seven research papers intended to turn discussions into practical steps. Subjects included deposit mobilisation, credit cards and agricultural infrastructure. Sitharaman stressed that proposals must be usable by the bank officers responsible for putting them into practice.

Young customers were another priority. Sitharaman noted that almost 29% of India’s population falls in the 15–29 age bracket and asked banks to better understand their financial needs. She wanted that understanding reflected in product choices and longer-term planning.

Discussions also covered Global Capability Centres and priority sector lending. Ideas from the confluence are expected to inform a planned high-powered committee on the future direction of Indian banking.