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FinMin asks PSBs to improve CASA ratio, expand credit to priority sector

The New Indian Express Bhubaneswar

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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.

- ENS ECONOMIC BUREAU @New Delhi

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.

FLERE HISTORIER FRA The New Indian Express Bhubaneswar

The New Indian Express Bhubaneswar

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