FM to Review Public Sector Banks’ Performance on June 27 Amid Focus on Profitability, Credit Growth, Cybersecurity
Finance minister Nirmala Sitharaman is set to review the performance of public sector banks (PSBs) on June 27, with a sharp focus on key financial and operational indicators, according to government sources.
The review meeting will assess several parameters including profitability, recovery of non-performing assets (NPAs), deposit mobilisation, digital payments, cybersecurity, and implementation of government-backed financial schemes.
The timing of the review is significant, coming close on the heels of the Reserve Bank of India’s (RBI) monetary policy decision on June 6, where the central bank delivered a larger-than-expected 50 basis points (bps) repo rate cut and announced a phased 100 bps cut in the cash reserve ratio (CRR) to infuse liquidity into the banking system.
Officials said the finance minister will also take stock of capital adequacy levels across PSBs, particularly capital-to-risk weighted asset ratios (CRAR), to ensure banks are sufficiently buffered to meet future credit requirements.
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PSBs, backed by government reforms, have reported strong financial results in FY25. According to available data, the 12 public sector banks collectively posted a 26% year-on-year growth in net profit at Rs 1.78 lakh crore, up from Rs 1.41 lakh crore in FY24. The strong earnings underline improvements in asset quality, governance, and lending discipline.
The meeting is also expected to cover initiatives to improve credit access to agriculture, MSMEs, and the infrastructure sector, with a renewed focus on financial inclusion. Review of new credit products, digitisation of banking services, and adoption of data-driven credit assessment models—especially for MSMEs—will likely be key discussion areas.
Additionally, the finance minister will likely evaluate the progress of flagship schemes including the PM Surya Ghar Muft Bijli Yojana, PM Vishwakarma Yojana, Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
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Sources added that collaboration between PSBs, regulators, and cyber security agencies to combat financial frauds and enhance digital trust will also be discussed. The government’s ongoing reforms have strengthened credit discipline, resolution mechanisms, governance structures, and technology integration within the public sector banking ecosystem.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
