Finance Minister Nirmala Sitharaman Chairs Annual Performance Review of PSB Chiefs in New Delhi.

On 27 June 2025, Union Finance and Corporate Affairs Minister Nirmala Sitharaman convened the annual review meeting with MDs and CEOs of Public Sector Banks (PSBs) in New Delhi. The discussion centered on financial health, lending growth, inclusion strategies, digital banking, and cybersecurity to bolster PSBs’ performance.

      - The Minister opened by recognizing the remarkable growth in FY 2024–25, where PSBs posted a record net profit of ₹1.78 lakh crore, up from ₹1.04 lakh crore in FY 2022–23. Total business surged from ₹203 lakh crore to ₹251 lakh crore, while net NPAs plunged to just 0.52%. Capital adequacy remained strong at a 16.15% CRAR, and total dividends increased to ₹34,990 crore.

      - She emphasized strengthening deposit mobilization to sustain credit expansion, urging PSBs to leverage their branch network and ramp up outreach, especially in semi-urban and rural zones. A new financial inclusion campaign will commence on 1 July 2025, spanning three months and covering 2.7 lakh gram panchayats and urban local bodies. Its focus includes KYC/re-KYC, unclaimed deposits, and flagship schemes like PM Jan Dhan, PMJJBY, and PMSBY.

      - On credit front, Sitharaman directed banks to prioritize renewable and sustainable energy financing—including small modular nuclear reactors—and to back emerging growth sectors while maintaining rigorous underwriting standards. Agriculture lending was highlighted through the PM Dhan Dhanya Yojana, targeting 100 low-productivity districts.

Main Point :-   (i) Under the MSME portfolio, the new credit assessment model launched on 6 March 2025 has already supported ₹60,000 crore across 1.97 lakh loans. Additionally, 2.28 lakh loans worth ₹51,192 crore under Stand Up India, and 6,682 education loans totalling ₹1,751 crore under PM Vidya Lakshmi were sanctioned. Banks have been instructed to further strengthen these models for inclusive credit access.

      (ii) Customer experience and innovation were key agenda points. PSBs were instructed to enhance grievance redressal, adopt multilingual digital platforms, maintain clean branches, speed up vacancy recruitment, and extend physical presence in metro and underserved northeastern regions. Focus was also placed on boosting cyber resilienc.

(iii) Lastly, Sitharaman urged banks to deepen their footprint in GIFT City to access international finance opportunities, including the India International Bullion Exchange, and continue participation in flagship schemes like PM Surya Ghar Muft Bijli and PM Vishwakarma.