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Finance Minister Nirmala Sitharaman reviewes PSBs’ financial performance. It marks first formal interaction between FM and PSB executives after RBI recent monetary easing steps.
Finance Minister Nirmala Sitharaman chairs the meeting to review performance of public sector banks on various parameters, in New Delhi, on Friday.
Union Finance Minister Nirmala Sitharaman on Friday chaired a crucial meeting with the heads of public sector banks (PSBs) in New Delhi to review their financial performance and assess the progress of various government-backed schemes.
This meeting marks the first formal interaction between the Finance Minister and PSB executives following the Reserve Bank of India’s (RBI) recent monetary easing steps. Earlier this month, the RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra, announced a surprise 50 basis points cut in the repo rate to 5.5%, along with a 100 basis points reduction in the Cash Reserve Ratio (CRR) to 3%, aimed at infusing Rs 2.5 lakh crore of additional liquidity into the banking system.
According to the Finance Ministry’s post on X (formerly Twitter), the meeting was attended by Minister of State for Finance Bhagwat Karad, Department of Financial Services (DFS) Secretary M. Nagaraju, and the MDs and CEOs of all 12 public sector banks, along with other senior officials.
Union Finance Minister Smt. @nsitharaman chairs the meeting to review performance of Public Sector Banks #PSBs on various parameters, in New Delhi, today.The meeting is also being attended by Union Minister of State for Finance Shri @mppchaudhary ; Shri M. Nagaraju, Secretary… pic.twitter.com/XQfNQLotMb
— Ministry of Finance (@FinMinIndia) June 27, 2025
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 was 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.
On Thursday, Sitharaman also visited the International Financial Services Centre (IFSC) at GIFT City in Gujarat’s Gandhinagar and reviewed the progress of GIFT International Finance Services Centre.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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