New Delhi, Aug. 17 -- Finance Minister Nirmala Sitharaman on Monday said the government would soon constitute a high-level panel on 'Banking for Viksit Bharat' to draw up a blueprint to create lenders capable of meeting the financing needs of a developed India.
In this year's Budget, the finance minister had proposed a high-level committee on 'Banking for Viksit Bharat' to comprehensively review the sector and align it with India's next phase of growth.
Addressing the two-day PSB Confluence here, Sitharaman said, "The intensive discussions of today and tomorrow come at a time we expect the announcement on the high-powered committee to look into banking for Viksit Bharat. Sooner, the committee will be announced."
She expressed hope that the deliberation at the two-day meeting would provide substantive material for the committee also to look at.
"So the committee would probably have that material before them even as they deliberate. And even as they deliberate, to give us their thoughts and also the recommendations which will help us to clearly understand where the committee wants India to go towards Viksit Bharat and in that the role of banks," she said. Emphasising that the Viksit Bharat goal of 2047 is actually not too far away, she said, "your NPAs are at the lowest ever Indian banking has seen, and therefore there cannot be a better position of strength with which you can take on reforms."
"I propose setting up a high-level committee on 'Banking for Viksit Bharat' to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection," she had said in the Budget speech on February 1.
Speaking at Monday's event, Financial Services Secretary Sanjay Lohia said it is imperative for public sector banks to sustain the current momentum, especially as competition is becoming sharper.
"Technology is reshaping business models, customer experiences are evolving, and new areas of economic activity are emerging rapidly," he said.
Therefore, state-owned banks must continue to strengthen their competitiveness, growth within the domestic financial landscape, and against evolving global benchmarks, he said.
"This will require the institutions to anticipate opportunities, deepen sectoral expertise, and continuously adapt their capabilities, products and business models," he said.
"Financial institutions also have an important role where specialised expertise and financing structures can complement the scale and reach of banks," he said.
The two-day deliberation is structured around seven key themes: deposit mobilisation, banking for youth, supporting the investment cycle, supporting global capability centres, agriculture and horticulture value-chain infrastructure, re-imagining the credit card business and priority sector lending.
Published by HT Digital Content Services with permission from Millennium Post.