FM Nirmala Sitharaman to meet PSB chiefs on Thursday for annual review

Union Finance Minister Nirmala Sitharaman on Thursday will chair the annual performance review meeting with public-sector banks (PSBs) for financial year 2024–25 (FY25), according to a senior government official familiar with the matter.

 

“The meeting will bring together managing directors of all PSBs, State Bank of India chairman, Financial Services Secretary M Nagaraju, and other senior officials. The focus will be to review FY25’s financial results, along with discussions on business growth, loan recoveries, progress in digital banking, and efforts on financial inclusion,” the official said. 

 

This will be Sitharaman’s second interaction with the PSB chiefs this week. Last Friday, the FM had chaired a meeting, amid the border tensions between India and Pakistan, instructing banks to ensure businesses did not face service disruptions, ATMs had seamless cash availability, internet banking and Unified Payments Interface (UPI) services remained uninterrupted, and there was continued access to essential banking facilities. 

 

However, the previous review meeting of banks happened in August last year. 

 

The cumulative profits of PSBs surged to a record ₹1.78 trillion in FY25, registering a growth rate of 26 per cent over the previous year. All 12 PSBs saw profits of ₹1.41 trillion in FY24. 

 

“The FM will review their (PSBs’) current positions in bordering states, if they are able to serve the customers without any difficulty," another official said. 

 

Sitharaman may also assess deposit mobilisation efforts during the review, said another source aware of the matter. “In the previous meeting, the FM had emphasised the importance of boosting deposit growth. While credit expansion has gained momentum, there is still scope to strengthen deposit mobilisation to support lending in a sustainable manner.”

 

“The FM had advised banks to launch focused campaigns to attract deposits. This time, she may also review how PSBs are enhancing customer engagement,” the official added.