Union finance minister Nirmala Sitharaman on Sunday announced the setting up of a high-level committee on “Banking for Viksit Bharat”, signalling a comprehensive review of the financial sector as India prepares for its next phase of economic growth.“I propose setting up a high-level committee on banking for Viksit Bharat to comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection,” Sitharaman said in her Budget speech.She also outlined a clear vision for non-banking financial companies (NBFCs) under the Viksit Bharat framework, with defined targets for credit disbursement and technology adoption. “The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption,” the finance minister said.As part of efforts to improve scale and efficiency in public sector NBFCs, Sitharaman announced a restructuring plan. “In order to achieve scale and improve efficiency in the public sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation,” she said.In her Budget speech, Sitharaman also said the Indian banking sector today is marked by strong balance sheets and historic high profitability, underscoring the turnaround achieved over the past few years after a prolonged clean-up phase.The proposed committee comes amid expectations of a broader transformation roadmap for public sector banks, under the Viksit Bharat 2047 framework. The government has indicated that it wants Indian banks, especially PSBs, to emerge as globally competitive institutions, with an emphasis on governance, efficiency and technology adoption.Sitharaman’s remarks on balance-sheet strength and profitability align with recent data showing improved asset quality and sustained earnings across state-run lenders. PSBs had reported a combined net profit of Rs 93,675 crore in the first half of the current fiscal, while gross non-performing assets declined to multi-year lows.