FinMin Asks PSBs To Broaden Credit Focus Amid Tariff Woes

The finance ministry has asked public-sector banks (PSBs) to broaden their credit focus beyond large corporations to include mid-market companies, small and medium enterprises, agriculture, and startups, a senior government official said.

- HARSH KUMAR

The direction comes in the wake of the 50 percent US tariff on Indian exports, which may adversely impact labor-intensive sectors.

"PSBs have been told to focus on credit growth across loan sizes, especially in core engineering, manufacturing, agriculture, micro, small and medium enterprises (MSMEs), and startups," the official said.

The finance ministry on Wednesday reviewed the first-quarter financial performance of PSBs. The meeting, chaired by Financial Services Secretary M Nagaraju, was attended by the heads of the banks.