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| FM to meet bank heads on June 27 | | | New Delhi, June 13:
Amid rate moderation by the Reserve Bank, Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks (PSBs) on June 27, to discuss host of issues including review of financial performance and implementation of various government schemes.
This is going to be the first review meeting after the Reserve Bank on Friday carried out a jumbo policy rate cut of 50 basis points, and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.
The RBI’s six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. It also slashed the cash reserve ratio by 100 basis points to 3 per cent in tranches that will add Rs 2.5 lakh crore to already surplus liquidity in the banking system.
According to sources, the Finance Minister would review the financial performance of public sector banks and their targets for the current financial year.
Besides, sources said, the minister may urge public sector banks to increase their lending towards productive sectors to prop of economic growth which hit four-year low of 6.5 per cent in FY25.
Comprehensive review of various segments and progress in government schemes including the Kisan Credit Card, PM Mudra and three social security (Jan Suraksha) schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) might be discussed during the meeting.
It is to be noted that Public Sector Banks’ (PSBs) cumulative profit rose to a record level of Rs 1.78 lakh crore in the fiscal year ended March 2025, registering a growth of 26 per cent over the previous year.
All 12 public sector banks had earned a total profit of Rs 1.41 lakh crore in FY’24.
The year-on-year increase in profit in absolute terms rose by about Rs 37,100 crore in FY25.
Out of the total profit of Rs 1,78,364 crore earned during FY’25, market leader State Bank of India (SBI) alone contributed over 40 per cent of the total earnings, as per the published numbers on stock exchanges.
SBI logged a net profit of Rs 70,901 crore in FY25, 16 per cent higher than the previous fiscal (Rs 61,077 crore).
In percentage terms, Delhi-based Punjab National Bank reported the highest net profit growth of 102 per cent to Rs 16,630 crore, followed by Punjab & Sind Bank with a 71 per cent rise to Rs 1,016 crore.
During the year, all 12 public sector banks (PSBs) reported a rise in profit. (PTI) |
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