The Finance Ministry has scheduled a meeting with the heads of Public Sector Banks (PSBs) on March 4, 2025 to review their financial performance and assess the progress of financial inclusion schemes.
Key Agenda of the Meeting
The meeting will be chaired by Financial Services Secretary M Nagaraju and will focus on:
- Reviewing financial performance of PSBs
- Assessing progress of financial inclusion schemes, including PM SVANidhi
- Discussing banking sector trends after the Union Budget 2025-26
This will be the first official meeting between the government and public sector banks after the presentation of the Union Budget 2025-26 in Parliament.
PSBs Report Record Profits
Public Sector Banks have demonstrated strong financial performance in the current fiscal year. Between April and December 2024, PSBs reported a record net profit of ₹1.29 lakh crore, reflecting an annual growth of 31.3%.
Key highlights of PSB performance include:
- Highest-ever net profit: ₹1,29,426 crore (31.3% year-on-year growth)
- Total operating profit: ₹2,20,243 crore
- Improved asset quality: Net NPA ratio at 0.59% (₹61,252 crore)
- Strong business growth: Aggregate business reached ₹242.27 lakh crore
- Deposit growth: Increased by 9.8% year-on-year
- Overall business expansion: Grew by 11% year-on-year
What This Means for the Banking Sector
The steady improvement in financial health indicates that PSBs are well-capitalized and maintaining better asset quality. The low net NPA ratio of 0.59% suggests that banks are effectively managing bad loans, which strengthens confidence in the banking system.
With strong business growth and profitability, the upcoming meeting on March 4 is expected to focus on maintaining this momentum and further expanding financial inclusion schemes.