New Delhi
On Monday, Union Finance Minister Nirmala Sitharaman led a review meeting to assess the performance of Public Sector Banks (PSBs) across key financial metrics, including deposit mobilization, digital payments, and cybersecurity measures.
The meeting highlighted the strong performance of PSBs in the financial year 2023-24, with notable improvements in asset quality, reflected by a decline in Net NPAs to 0.76%. Banks also demonstrated sound capital adequacy at 15.55%, a healthy Net Interest Margin (NIM) of 3.22%, and recorded a highest-ever net aggregate profit of ₹1.45 lakh crore, along with ₹27,830 crore in dividends to shareholders. This improved financial standing has enhanced PSBs’ ability to raise capital from markets.
Sitharaman acknowledged the uptick in credit growth but emphasized the need for improved deposit mobilization to sustainably support this growth. She urged banks to conduct special drives to attract more deposits and advised them to foster stronger relationships with customers, particularly in rural and semi-urban areas.
The Finance Minister also addressed the importance of cybersecurity, advising banks to adopt a systemic approach in collaboration with the government, regulators, and security agencies. She emphasized the need for regular reviews of IT systems to safeguard against cyber threats.
Furthermore, Sitharaman reiterated the government’s commitment to improving credit access for citizens at the grassroots level and urged banks to swiftly implement recent budget initiatives, including a new credit assessment model for MSMEs. She also directed banks to comply with RBI guidelines on timely handover of security documents post-loan closure.
