Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27. She made a major announcement for the banking sector. Sitharaman said a high-level committee will be formed to review the banking sector, and a growth-oriented plan will be introduced based on reforms. She said the Indian banking sector is in a strong position, and its income and reach have grown worldwide.
Banks in strong position: Sitharaman
Sitharaman said that under the financial sector, the Indian banking system is in a good position. Banks’ balance sheets are strong, historically robust, and there has been an improvement in asset quality. Now, this sector needs to be taken forward, and solutions will be provided to strengthen it further. While announcing the high-level committee, the finance minister said it will review the banking structure, efficiency, and preparedness. Financial expansion will be implemented in accordance with the next phase of reforms.
Govt push for NBFCs
The finance minister also announced a clear roadmap for non-banking financial companies (NBFCs). She said the government has set priorities, especially for private sector NBFCs, focusing on credit disbursement and technology adoption. She added that there is a proposal to restructure NBFCs under power finance corporations and rural electrification corporations to improve efficiency.
India banks eye global rise
It is believed that Indian banks will strengthen further and consolidate their position globally. Currently, none of the Indian banks is listed among the top 100 companies by market capitalisation. However, Chinese banks rank in the list, including ICBC ($371.25 billion), Agricultural Bank of China ($338.37 billion), and China Construction Bank ($328.0 billion). However, asset-wise, two Indian banks are listed among the world’s top 10 banks.
