Sitharaman at PSB Confluence: Banks must plan for youth, drive reform

FM Nirmala Sitharaman stated that NPAs are at their lowest ever, empowering banks to drive reform. At the PSB Confluence 2026, she urged lenders to focus on themes like youth banking and create actionable ideas for India's development.

Union Finance Minister Nirmala Sitharaman on Monday declared that non-performing assets (NPAs) in Indian banking have fallen to their lowest-ever level, telling public sector bank chiefs at the inaugural session of PSB Confluence 2026 that lenders are now in their strongest-ever position to drive reform.

Focus on Youth and Actionable Ideas

Addressing top bank leadership at the two-day conclave, Sitharaman said the Department of Financial Services (DFS) had, for the first time in her tenure, prepared detailed research documents on all seven themes chosen for discussion at the meet. She singled out the document on youth as particularly striking, noting it breaks down India's young population by age and life stage, and pointed out that nearly 29% of Indians fall between the ages of 15 and 29 a demographic she said banks must factor into their planning.

The minister said the seven papers, shared in advance with participants, drew on global best practices and were meant to be studied closely so that deliberations could yield concrete, actionable ideas rather than broad statements of intent. "Workable," she said, "because you have given the ideas you're the ones who are going to take it forward."

Laying the Groundwork for 'Viksit Bharat'

Sitharaman linked the timing of the confluence to an expected announcement of a high-powered committee on banking for a Viksit Bharat (Developed India), saying the outcomes of this meet would give that committee substantive material to work with as it frames recommendations on the sector's future role.

Referring to the sharp decline in NPAs, she said banks have earned credibility through a difficult clean-up process and are now positioned to embrace reform from a place of strength rather than crisis management.

Seven Key Themes for Discussion

The seven themes selected for discussion at the confluence are, deposit mobilisation, banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value chain infrastructure, priority sector lending, and reimagining credit card business.

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