The Finance Ministry has called a crucial meeting with the heads of Public Sector Banks (PSBs) on April 17, 2025, to assess the financial performance of banks and establish targets for key government schemes for the financial year 2025-26. The meeting, to be chaired by Financial Services Secretary M Nagaraju, an IAS officer of 1993 batch, will also discuss the progress of flagship programs like Jan Dhan Yojana and the Mudra Scheme.
The discussion will focus on the financial performance of PSBs during the fiscal year ending on March 31, 2025, with a special emphasis on financial inclusion schemes such as PM SVANidhi, which aims to provide financial support to street vendors.
According to sources, PSBs have reported remarkable growth, with the highest-ever net profit of Rs 1.29 lakh crore in the April-December period of the current fiscal year, reflecting an impressive year-on-year increase of 31.3 percent. The banks’ performance has seen significant improvement across key financial parameters, including net profit growth, enhanced asset quality, and the build-up of capital buffers.
In the nine months of the current financial year, the 12 state-owned banks collectively achieved a net profit growth of 31.3 percent, with an aggregate net profit of Rs 1,29,426 crore. They also recorded an aggregate operating profit of Rs 2,20,243 crore during this period.
The banks also reported a considerable improvement in asset quality, with the net non-performing asset (NPA) ratio dropping to 0.59 percent, and the aggregate net NPA outstanding at Rs 61,252 crore. Additionally, PSBs witnessed an 11 percent year-on-year business growth, with deposits growing by 9.8 percent, reaching a total aggregate business of Rs 242.27 lakh crore.
The meeting is expected to focus on further strengthening these financial results and aligning them with the government’s goals for financial inclusion and economic growth.
