Finance Minister Confirms No Roadmap for PSU Bank Mergers, Announces High-Level Banking Committee

Finance Minister Nirmala Sitharaman stated that the government currently has no roadmap for mergers of public sector banks. She highlighted the formation of a High-Level Committee on Banking for Viksit Bharat, proposed in the 2026-27 Budget, which will review the banking sector comprehensively. The committee aims to strengthen Indian banking, promote financial stability, inclusion, and consumer protection, and may consider creating mega-lenders to support India's development goals. The Budget also proposes restructuring key public sector NBFCs like Power Finance Corporation and Rural Electrification Corporation.