Union Finance Minister Nirmala Sitharaman stated on Monday that non-performing assets (NPAs) in the Indian banking sector have reached an all-time low. She noted that public sector banks are now in a stronger position than ever to drive reforms forward.
The Finance Minister made these remarks while addressing top executives of public sector banks at the inaugural session of ‘PSB Conclave 2026’. Critical issues concerning the banking sector are being discussed at this two-day conference.
Sitharaman highlighted that, for the first time during her tenure, the Department of Financial Services has prepared detailed research papers on the seven themes selected for discussion at the conclave.
Specifically mentioning the paper related to the youth, she noted that it analyzes India’s young population based on age and various life stages. She pointed out that approximately 29 percent of India’s population falls within the 15–29 age group, and banks should keep this vast youth demographic in mind when formulating their plans.
The Finance Minister stated that the seven papers prepared for the conclave incorporate best practices adopted by various countries around the world. These documents have been made available to the participating officials in advance so that discussions do not remain limited to abstract ideas but yield actionable suggestions.
She emphasized that the responsibility for implementing these suggestions would ultimately rest with the banks themselves.
Sitharaman noted that this conclave is taking place at a time when the formation of a high-level committee on the banking sector’s role in a ‘Viksit Bharat’ (Developed India) is expected to be announced. Suggestions emerging from the conclave could prove useful to this committee in defining the future role of the banking sector.
Highlighting the sharp decline in NPAs, the Finance Minister remarked that banks have earned credibility by cleaning up their balance sheets during challenging times. Instead of merely grappling with crises, banks are now in a position to advance reforms from a place of strength.
Seven key themes have been selected for discussion at the PSB Conclave. These include increasing deposits, banking services for the youth, promoting investments, Global Capability Centres, a framework for the agriculture and horticulture sector value chain, priority sector lending, and a transformation of the credit card business.
