Union Finance Minister Nirmala Sitharaman said on August 17, 2026, that non-performing assets (NPAs) in India’s banking sector have declined to their lowest-ever level. She made the remarks while addressing senior leadership of public sector banks (PSBs) at the inaugural session of the two-day PSB Confluence 2026 in New Delhi.
Sitharaman said the significant improvement in asset quality reflects the banking sector’s progress following an extensive clean-up of stressed assets. According to the Finance Minister, the stronger financial position of banks provides greater scope for undertaking structural reforms and supporting the next phase of economic growth.
The Department of Financial Services (DFS) has prepared research papers covering seven key areas selected for discussion at the confluence. The papers incorporate international practices and were circulated among participants ahead of the discussions to encourage practical and implementable recommendations.
Highlighting the importance of India's young population, Sitharaman noted that around 29% of the country's population is in the 15–29 age group. She said the demographic profile should be considered by banks while developing future strategies and financial products.
The Finance Minister also linked the discussions at PSB Confluence 2026 with the proposed high-powered committee on banking for Viksit Bharat. She said the ideas and outcomes emerging from the conclave could provide substantive inputs for the committee as it considers the future direction and role of the banking sector.
The seven focus areas identified for the conclave are deposit mobilisation, banking for youth, support for the investment cycle, global capability centres, agriculture and horticulture value-chain infrastructure, priority sector lending, and the future of the credit card business. CASansaar