New Delhi, June 27 The total business of public sector banks has surged from Rs 203 lakh crore in FY 2022–23 to Rs 251 lakh crore in FY 2024–25 while the net non-performing assets (NPAs) have declined from 1.24 per cent to 0.52 per cent during this period, Finance Minister Nirmala Sitharaman was informed at the annual review meeting with bank chiefs here on Friday.
The net profit of public sector banks has also risen from Rs 1.04 lakh crore to Rs 1.78 lakh crore, and dividend payouts grew from Rs 20,964 crore to Rs 34,990 crore during this period.
The Finance Minister was also apprised that the public sector banks are adequately capitalised, with their capital adequacy ratio standing at 16.15 per cent as of March 2025.
She reviewed the performance of public sector banks across key areas with a focus on financial strength, inclusive lending, cybersecurity, and customer-centric innovation.
Sitharaman emphasised the need for sustained efforts to improve deposit mobilisation to support ongoing credit growth. PSBs were advised to undertake special drives, make effective use of their branch networks, and deepen outreach in semi-urban and rural areas.
Banks were instructed to scale up efforts under key financial inclusion schemes, including PM MUDRA Yojana, PM Vishwakarma, PM Surya Ghar Muft Bijli Yojana, PM Vidyalaxmi, and the Kisan Credit Card (KCC) scheme.
As announced in the Union Budget 2025-26, PSBs were encouraged to focus on agri credit in the 100 low crop productivity districts to be identified under the PM Dhan Dhanya Yojana. Banks were instructed to tailor special credit products to enhance agricultural productivity and unlock local economic potential by identifying & supporting farm products that can be developed in these particular districts.
Banks were further advised to expand their presence in GIFT City to support India’s aspirations in international financial services, tap into emerging global opportunities, and increase participation in the India International Bullion Exchange (IIBX).
Sitharaman directed the PSBs to participate actively in the upcoming 3-month Financial Inclusion saturation campaign, beginning July 1, covering 2.7 lakh Gram Panchayats and Urban Local Bodies.
She was apprised of the progress under the New Credit Assessment Model for MSMEs, launched on March 6, 2025, with 1.97 lakh MSME loans already sanctioned, amounting to Rs 60,000 crore. Banks were directed to strengthen the implementation of the New Credit Assessment Model for MSMEs to broaden access to capital and expedite credit flow to small & medium businesses.
It was also noted during the meeting that under the Stand Up India scheme, 2.28 lakh loans have been sanctioned worth Rs 51,192 crore.
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