Finance Minister Nirmala Sitharaman will hold a meeting with heads of public sector banks on Friday. Sitharaman will review the financial performance of banks and the progress of various government flagship schemes in this meeting. According to PTI news, this will be the first review meeting after the Reserve Bank cut 50 basis points in policy rates (repo rate) earlier this month and unexpectedly cut in cash reserve ratio (CRR) for banks.
Additional cash will increase due to reduced interest rate
Let me tell you, on June 6, the six -member monetary policy committee of RBI headed by Governor Sanjay Malhotra reduced the benchmark recurrent or repo rate from 50 basis points to 5.5 percent. It also reduced the cash reserved ratio (CRR) from 100 basis points to 3 percent. This will increase the additional cash already existing in the banking system by Rs 2.5 lakh crore. According to sources, the Finance Minister may urge banks to increase loan flows in the producing sectors of the economy.
These government schemes may review
Sources said that the Finance Minister may urge the public sector banks to increase their loan to increase their loan to promote economic growth. The growth rate has reached a four -year low of 6.5 percent in FY 2025. In this meeting, all the areas including Kisan Credit Card, PM Mudra and three Social Security (Public Security) Schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) can be comprehensively reviewed. Also, the progress of government schemes can be discussed.
Banks’ financial performance at record level
The cumulative advantage of public sector banks (PSB) reached a record level of Rs 1.78 lakh crore in the financial year on March 2025, which records a 26 percent increase compared to the previous year. In FY 2024, all 12 public sector banks earned a total profit of Rs 1.41 lakh crore. In the financial year 2025, the increase in profit from year to year was around Rs 37,100 crore. Of the total benefits of Rs 1,78,364 crore earned during FY 2025, the leading State Bank of India (SBI) alone contributed more than 40 percent to the total income. SBI recorded a net profit of Rs 70,901 crore in FY 2025, which is 16 percent higher than the previous financial year (Rs 61,077 crore).
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