No Merger Roadmap for Public Banks: Finance Minister Sitharaman

Finance Minister Nirmala Sitharaman clarified that there is no current roadmap for mergers of public sector banks. However, a 'High-Level Committee on Banking for Viksit Bharat' proposed in the 2026-27 Budget will examine the banking sector's alignment with India's growth goals. Sanjay Malhotra commented on capital adequacy and FDI trends.

Finance Minister Nirmala Sitharaman has stated that the government currently lacks a roadmap for the mergers of public sector banks. A High-Level Committee on Banking for Viksit Bharat, outlined in the 2026-27 Budget, will investigate the matter as part of its mandate to strengthen Indian banking.

The committee will develop strategies to create mega-lenders to meet the financing requirements of a developed India while ensuring financial stability and consumer protection. Also proposed in the Budget is the restructuring of the Power Finance Corporation and Rural Electrification Corporation to enhance efficiency.

RBI Governor Sanjay Malhotra highlighted that banks are adequately capitalized to support credit growth in upcoming years, which will fulfill economic demands. He discussed the increase in gross FDI and the observed decrease in net FDI due to investment repatriations and domestic economic strengthening.