Finance Minister Nirmala Sitharaman chaired a gathering with public sector financial institution chiefs within the nationwide capital on Friday to evaluate the efficiency of the PSU banking house. Minister of State for Finance Pankaj Chaudhary, Monetary Providers Secretary M Nagaraju and different officers from the division, and the managing administrators and CEOs of a number of public sector lenders participated within the assembly. A number of challenges going through the PSU banking house are anticipated to be mentioned through the deliberations.
Directing the lenders to hurry up their mortgage disbursements, the finance minister advised the PSU financial institution chiefs to make sure that rate of interest modifications are transmitted extra quickly to the debtors.
She expressed satisfaction on the containment of PSU banks’ total non-performing belongings (NPAs) at 0.52 per cent, as of March-end.
Apart from, the minister additionally advised them to make sure high quality service and expertise for the debtors.
The assembly comes weeks after the Reserve Financial institution of India (RBI) delivered a bigger-than-expected 50-basis-point lower in the important thing lending charge whereas altering the coverage stance to ‘impartial’ from ‘accommodative’. The RBI additionally lower its money reserve ratio (CRR) to spice up the liquidity within the banking system.
There are 12 public sector banks within the system. Their total revenue reached a document Rs 1.78 lakh crore within the monetary yr ended March 31, 2025, marking 26 per cent development over the corresponding interval a yr in the past, information reveals.
12 PSU banks in India | See record
These banks are:
- SBI
- PNB
- Canara Financial institution
- Financial institution of Baroda
- Union Financial institution of India
- Punjab & Sind Financial institution
- Indian Financial institution
- Financial institution of India
- Central Financial institution of India
- Financial institution of Maharashtra (86.46%)
- Indian Abroad Financial institution
- UCO Financial institution
The finance minister’s assembly with the PSU financial institution chiefs comes days earlier than the onset of a brand new quarterly earnings season on Dalal Road.
How SBI, India’s largest lender by belongings, fared in FY25
State Financial institution of India registered a web revenue of Rs 70,901 crore within the monetary yr 2024-25, marking a rise of 16.1 per cent over the earlier yr.
Its working revenue crossed the Rs 1 lakh crore mark pushed by working earnings effectivity and contained working bills. It stood at rs 1,10,579 crore, up 17.9 per cent on a year-on-year foundation.
The financial institution’s home web curiosity margin (NIM), a key measure of profitability, stood at 3.22 per cent for the monetary yr.
The financial institution improved its asset high quality.
Its gross non-performing belongings (NPAs) as a proportion of whole loans got here all the way down to 1.82 per cent for FY25, 42 foundation factors decrease than the earlier yr. Internet NPAs have been at 0.47 per cent, down by 10 foundation factors.