Finance minister nirmala sitharaman is scheduled to meet the Chiefs of Public Sector Banks (PSBS) on Friday to Assess Their Financial Performance and Review Progress Under Various Flagship Government Schemes. The review come in the wake of recent policy evils by the reserve bank of India (RBI), AIMED at Bolstering Economic Growth.
Earlier this month, the RBI’s Six-Member Monetary Policy Committee, Chairde by Governor Sanjay Malhotra, Undertook a Significant Monetary Policy Insurance. The central bank slashed the repo rate by 50 Basis points to 5.5 per cent and reduced the cash reserve ratio (CRR) by 100 Basis Points to 3 per cent. The CRR cut, implemented in traches, is expected to inject an additional Rs 2.5 lakh Crore into the banking system, further enhancing liquidity.
In light of this rate moderation, the finance minister is expected to urge banks to increase lending to the productive sectors of the economy. According to an official PTI report, Citing sources, it has been indicated that this push for enhanced credit flow is part of broader economies to support to support Growth of 6.5 per cent in FY25.
Comprehensive Review of Key Government Schemes
The aged for the meeting also incluses a comprehensive review of key government schemes. This includes the Kisan Credit Card Initiative, PM Mudra Yojana, and the Three Jan Suraksha Social Security Schemes; Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
PSBS ‘performance remains a bright spot. Collectively, All 12 Public Sector Banks Posted A Record Cumulative Profit of Rs 1.78 Lakh Crore in FY25, Marking a 26 per cent Increase over the previous! The Year-On-Year Rise Amounts to Rs 37,100 Crore in Absolute Terms.
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The state bank of India (SBI) LED the Earnings Chart, Contributing Over 40 per cent of the total psb right. SBI Posted A Net Profit of Rs 70,901 Crore in FY25, A 16 per cent Increase from Rs 61,077 Crore in the Previous Year.
Among PSBS, Punjab National Bank Reported The Highest Growth in Net Profit in Percentage Terms, More Than Doubling Its Fy24 Earnings with A 102 per cent risk to Rs 16,630. Punjab & Sind Bank followed with a 71 per cent increase, recording a network of Rs 1,016 Crore.
All 12 PSBS Recorded Profit Growth in FY25, Reflecting the sector’s improved financial health ahead of today’s performance review.
