Speaking at the PSB Confluence 2026 in New Delhi, Sitharaman said lenders were better placed to finance growth after years of tackling stressed loans. The proposed committee follows a Union Budget commitment and will examine how banking can serve India’s longer-term development goals.

The minister stressed that reform suggestions should draw on the experience of people handling implementation. Financial Services Secretary Sanjay Lohiya said gross NPAs had declined to 1.93% in March 2026, compared with 14.6% in March 2018. Over that period, net NPAs fell to 0.39% from 8%.

Young customers are a key priority. With people aged 15–29 accounting for 29% of the population, Sitharaman called for products suited to their needs, including easier access to education finance and credit for young business founders.

Lohiya also flagged tougher competition for deposits as savers consider alternatives to bank accounts. Better service, stronger digital offerings and fresh products were identified as ways to retain customers. Banks were also encouraged to finance agricultural activities beyond cultivation, such as cold storage, processing and logistics, alongside opportunities linked to Global Capability Centres.