FM Sitharaman Holds Annual Review with PSB MDs and CEOs

FM Reviews PSB Performance with Focus on Strength, Inclusion, and Security

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Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman chaired a high-level meeting friday in New Delhi to review the performance of Public Sector Banks (PSBs) across key areas, including financial parameters, credit offtake, financial inclusion, customer service, grievance redressal, digital banking, and cyber security.

The meeting was attended by Union Minister of State for Finance Shri Pankaj Chaudhary; Secretary, Department of Financial Services, Shri M. Nagaraju; MDs of PSBs; and senior officials of the Department of Financial Services (DFS).

The Finance Minister (FM) acknowledged the strong financial performance of PSBs in recent years, and particularly in FY 2024-25.

It was noted during the meeting that from FY 2022-23 to FY 2024-25, the total Business of Public Sector Banks (PSBs) rose from 203 lakh crore to 251 lakh crore.

During the same period (FY 2022-23 to FY 2024-25), net NPAs of the PSBs declined sharply from 1.24% to 0.52%, Net Profit increased from 1.04 lakh crore to 1.78 lakh crore, and dividend payouts grew from 20,964 crore to 34,990 crore.

FM was also apprised that the PSBs are adequately capitalised, with their CRAR standing at 16.15% as of Mar-2025.

During the review of deposit and credit trends, FM emphasised the need for sustained efforts to improve deposit mobilisation to support ongoing credit growth. PSBs were advised to undertake special drives, make effective use of their branch networks, and deepen outreach in semi-urban and rural areas.