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FinMin asks PSBs to improve CASA ratio, expand credit to priority sector
The New Indian Express Hubballi
|September 13, 2025
The Ministry of Finance has set a long-term target of having at least two globally competitive Indian banks by 2047, and has therefore asked the public sector banks to focus more on improving fundamentals, including boosting low-cost deposits and expanding credit to priority sectors.
As per senior finance ministry officials, these issues and goals were discussed during the ongoing Manthan review of the state-run banks. During the review meeting, the Finance Ministry flagged the need for the public sector banks to strengthen current account and savings account (CASA) deposit ratio as it has slipped across banks in recent quarters, thereby creating pressure on net interest margins.
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