FM Sitharaman To Meet PSU Bank Chiefs On June 27 To Review Performance, Boost Lending

New Delhi: Following a pointy rate of interest lower by means of the Reserve Bank of India (RBI), Finance Minister Nirmala Sitharaman will meet the heads of public sector banks on June 27 to study their monetary efficiency and speak about key govt schemes. 

This would be the first primary evaluate assembly because the RBI’s sudden transfer to slash the coverage repo charge by means of 50 foundation issues to 5.5 consistent with cent and lower the money reserve ratio (CRR) by means of 100 foundation issues to 3 consistent with cent. The CRR lower will probably be applied in levels and is anticipated to unencumber Rs 2.5 lakh crore into the banking machine, boosting liquidity and inspiring lending.

The RBI’s six-member Monetary Policy Committee, headed by means of Governor Sanjay Malhotra, voted five-to-one in favour of this coverage easing. The charge cuts are aimed toward stimulating financial expansion, which slipped to a four-year low of 6.5 consistent with cent in FY25.

According to stories, the Finance Minister will use the June 27 assembly to evaluate the monetary well being of public sector banks and set new goals for the continued monetary yr. FM Sitharaman may be anticipated to induce banks to extend credit score float to productive sectors to beef up the slowing financial system.

The assembly is prone to come with a evaluate of key govt projects such because the Kisan Credit Card scheme, the Pradhan Mantri Mudra Yojana, and 3 social safety programmes — the Pradhan Mantri Jeevan Jyoti Bima Yojana, the Pradhan Mantri Suraksha Bima Yojana, and the Atal Pension Yojana.

The evaluate comes at a time when public sector banks are reporting file earnings. In FY25, their blended benefit jumped 26 consistent with cent to an all-time prime of Rs 1.78 lakh crore, up from Rs 1.41 lakh crore in FY24. All 12 public sector banks posted earnings for the yr. State Bank of India (SBI), the rustic’s greatest lender, led the pack with a web benefit of Rs 70,901 crore in FY25 — a 16 consistent with cent building up over the former yr. It on my own accounted for over 40 consistent with cent of the whole profits amongst public sector banks.