**Executive Summary**
On May 7, 2026, the Secretary of the Department of Financial Services (DFS) delivered the keynote address at the inaugural IBA Summit on Risk Management in Mumbai. The summit focused on "Building Resilient Banks" amidst global uncertainty, highlighting the sector's record-low Non-Performing Assets (NPAs) and robust credit growth. Key mandates include embedding a pervasive risk culture within institutions, addressing cyber vulnerabilities, and ensuring the protection of vulnerable customer segments.
**Key Points / Main Content**
* **Sector Performance and Resilience**
* The Indian banking sector is characterized by unprecedented resilience, featuring record-low NPAs and stable performance despite global headwinds.
* Substantial credit growth has been observed across the agriculture, MSME, and corporate sectors.
* The domestic economy remains on a robust trajectory despite international challenges such as geopolitical conflicts and global tariff issues.
* **Strategic Risk Management**
* Risk management must be transitioned from a traditional compliance function to a core strategic capability embedded in all bank functions.
* Strengthening "risk culture" is identified as the ultimate competitive advantage for Indian banks in an era of global uncertainty.
* A comprehensive industry risk survey and a commemorative essay compendium were unveiled to promote industry insights and professional engagement.
* **Technology and Digital Security**
* While digital infrastructure offers significant benefits, banks must remain cautious of emerging cyber vulnerabilities.
* Customer trust is the foundation of banking; therefore, digital safety is paramount as the landscape becomes increasingly digital.
* **Governance and Leadership**
* Senior management is responsible for leading and cultivating a pervasive risk culture across their organizations.
* Chief Risk Officers (CROs) must be provided with the requisite independence and resources to perform their roles effectively.
**Impact Analysis**
**Indian Banks and Financial Institutions**
**Impact**
Institutions are recognized for their structural strength but face the challenge of integrating risk management into every operational layer rather than treating it as a standalone department.
**Action Required**
Embed risk management as a core strategic capability in all functions and prioritize the systematic reduction of NPAs.
**Chief Risk Officers (CROs)**
**Impact**
CROs are highlighted as pivotal figures in the new governance structure, moving beyond traditional compliance roles.
**Action Required**
Exercise independence and utilize allocated resources to oversee an evolved, pervasive risk culture within their respective banks.
**Vulnerable Customer Segments (Small businesses, senior citizens, first-time digital users)**
**Impact**
These groups are identified as high-priority areas for protection to maintain the foundational trust of the banking system.
**Action Required**
Banks must implement specific measures to ensure these segments are adequately protected from cyber vulnerabilities and digital fraud.
**Indian Banks’ Association (IBA)**
**Impact**
The IBA is positioned as a key facilitator for industry-wide resilience and strategic alignment through summits and industry surveys.
**Action Required**
Continue to delineate strategic priorities for institutional resilience and support the evolution of risk management standards across the sector.
Key Entities Referenced
Department of Financial Services (DFS): The wing of the Union Ministry of Finance responsible for policy-making and oversight of public sector banks and financial institutions.
Indian Banks' Association (IBA): The representative body of management of banking in India that organized the summit to strengthen risk management and institutional resilience.
Shri M. Nagaraju: Secretary of the Department of Financial Services who outlined the strategic priorities for the banking sector's risk culture and digital transformation.
Public Sector Banks (PSBs): The primary group of financial institutions noted for systematically reducing Non-Performing Assets (NPAs) and driving credit growth across key sectors.
Ministry of Finance
Secretary, Department of Financial Services, Shri
M. Nagaraju, Delivers Keynote Address at the 1st
IBA Summit on Risk Management
Indian Banking Sector Demonstrates Unprecedented
Resilience with Record-Low NPAs and Robust Credit Growth
Despite Global Headwinds: DFS Secretary
Posted On: 07 MAY 2026 4:31PM by PIB Mumbai
Mumbai, 7 May 2026
The Secretary, Department of Financial Services (DFS), Union Ministry of Finance, Shri M.
Nagaraju, delivered the keynote address today at the inaugural session of the 1st Indian Banks'
Association (IBA) Summit on Risk Management in Mumbai. Based on the theme ‘Navigating
Uncertainty: Building Resilient Banks’, the session was also addressed by Chairman, IBA and
Chairman, State Bank of India, Shri C. S. Setty, who delineated the banking industry’s strategic
priorities for institutional resilience.
During the session, Shri M. Nagaraju also unveiled a comprehensive industry risk survey and a
commemorative essay compendium featuring the top 30 entries from a nationwide competition
that drew over 650 submissions from banking professionals.
Speaking on the occasion, Shri M. Nagaraju observed that despite various challenges, the
economy is growing well and the banking sector is stable and performing well. Shri M. Nagaraju
stated, "In an era of global uncertainty, strengthening our risk culture is the ultimate
competitive advantage for Indian banks. Risk management, therefore, must be embedded in the
culture of every bank", urging institutions to make it a core strategic capability and embed in all
the functions of banks. .
Highlighting the structural strength of the Indian banking system, the DFS Secretary praised the
executive leadership across Public Sector Banks (PSBs) for systematically reducing Non-
Performing Assets (NPAs). He further noted the substantial credit growth across the agriculture,
MSME, and corporate sectors. Observing the Indian economy's robust trajectory amidst
compounding international challenges such as global tariff issues and geopolitical conflicts, Shri
Nagaraju emphasized on the nation's underlying economic strength.Addressing the integration of advanced technologies, the DFS Secretary acknowledged the
benefits of digital infrastructure but cautioned against emerging cyber vulnerabilities.
Furthermore, Shri Nagaraju underscored the critical importance of customer protection in an
increasingly digital landscape, stating, "Customer trust is the foundation of banking. Every bank
must ensure that customers, particularly small businesses, senior citizens, first-time digital
users, and the vulnerable segments are adequately protected."
He concluded by advocating for a governance led by senior management to cultivate a pervasive
risk culture by equipping Chief Risk Officers (CROs) with the requisite independence and
resources. He commended the IBA for its historical role in strengthening the banking sector,
noting that risk management has evolved well beyond traditional compliance.
The dignitaries present at this Summit included Executive Director, Indian Overseas Bank, Shri
T. Dhanaraj; Executive Director, Bank of India, Shri Rajiv Mishra; Executive Director, Punjab
National Bank, Shri Amit Kumar Srivastava; and Professor, Indian Institute of Management (IIM)
Bangalore, Prof. M. Jayadev. The inaugural session was attended by distinguished dignitaries,
policymakers, and senior leadership from the financial sector as well.
* * *
PIB Mumbai | Sriyanka Chatterjee/Yash Rane/Darshana RaneFollow us on social media: @PIBMumbai /PIBMumbai /pibmumbai pibmumbai[at]gmail[dot]com /PIBMu
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