Finance Ministry to Meet Public Sector Bank Heads on March 4 to Review Financials

The Finance Ministry will review public sector banks’ performance and progress of financial inclusion schemes, among others on March 4, as per news reports.

Finance Ministry to Assess PSBs’ Growth

The Finance Ministry has scheduled a meeting with the heads of public sector banks (PSBs) on March 4 to assess their financial performance and progress in financial inclusion initiatives.

The meeting, chaired by Financial Services Secretary M Nagaraju, will be the first after the presentation of the Union Budget 2025-26 in Parliament.

PSBs have reported their highest-ever net profit of ₹1.29 lakh crore in the April-December period of the current fiscal year, reflecting an impressive 31.3% year-on-year (YoY) growth.

PSBs Achieve Record Profits and Strong Growth

The financial performance of public sector banks has significantly improved across key metrics, including record profit growth, enhanced asset quality, and robust capital buffers. The 12 state-owned banks posted an aggregate net profit of ₹1,29,426 crore in the first nine months of FY25, supported by an aggregate operating profit of ₹2,20,243 crore.

Additionally, asset quality has seen remarkable improvement, with the net non-performing assets (NPA) ratio dropping to a record low of 0.59%. The total net NPA outstanding stood at ₹61,252 crore, demonstrating better risk management and financial stability among PSBs.

Business Growth and Deposit Expansion

Public sector banks have also recorded an 11% YoY increase in overall business growth, supported by a 9.8% rise in aggregate deposits. The total business of PSBs reached ₹242.27 lakh crore during the review period, reflecting sustained momentum in banking operations.

As the Finance Ministry prepares to review these achievements, the meeting on March 4 will provide insights into further strengthening the banking sector, driving financial inclusion, and ensuring continued stability in India’s banking system.

Conclusion

The upcoming Finance Ministry meeting with public sector bank heads on March 4 underscores the government’s commitment to monitoring and strengthening the financial sector.

With PSBs achieving record-breaking profits, improved asset quality, and steady business growth, the discussion will likely focus on sustaining this momentum and furthering financial inclusion.

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