FM Sitharaman to meet Heads of PSU Banks on 27 June

Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks (PSBs) on June 27.

As per sources, discussions will be held regarding financial performance and implementation of various government schemes.

This is going to be the first review meeting after the Reserve Bank on Friday carried out a jumbo policy rate cut of 50 basis points, and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.

The RBI’s six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent.

It also reduced the cash reserve ratio by 100 basis points to 3 per cent in tranches that will add ₹2.5 lakh crore to already surplus liquidity in the banking system.According to sources, the Finance Minister would review the financial performance of public sector banks and their targets for the current financial year.

The Finance Minister may urge public sector banks to increase their lending towards productive sectors to prop of economic growth which hit four-year low of 6.5 per cent in FY25.

Comprehensive review of various segments and progress in government schemes including the Kisan Credit Card, PM Mudra and three social security (Jan Suraksha) schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) might be discussed during the meeting.