Finance ministry to meet heads of public sector banks on March 4, to review financial performance

Finance ministry has called a meeting of heads of public sector banks

The finance ministry has called a meeting of heads of public sector banks (PSBs) on March 4 to review financial performance of banks and progress of financial inclusion schemes, among others.

The meeting is scheduled to be chaired by Financial Services Secretary M Nagaraju.

According to sources, the meeting would also discuss and review the progress of various financial inclusion schemes including PM SVANidhi Schemes.

This is going to be the first meeting after presentation of Union Budget 2025-26 in Parliament.

PSBs have posted highest-ever net profit of Rs 1.29 lakh crore in the April-December period of the current fiscal year, marking an annual increase of 31.3 per cent.

The performance of PSBs has shown significant improvement on key financial parameters, like record net profit growth, improved asset quality, and build-up of adequate capital buffers, during the period under review.

The 12 state-owned banks recorded net profit growth of 31.3 per cent (year-on-year) to achieve highest-ever aggregate net profit of Rs 1,29,426 crore and aggregate operating profit of Rs 2,20,243 crore in the nine months of the financial year.

Further, improved asset quality is also visible from significantly low net NPA ratio at 0.59 per cent (aggregate net NPA outstanding of Rs 61,252 crore), the finance ministry had said in a statement.

They posted aggregate business growth of 11 per cent (year-on-year), with improved aggregate deposit growth at 9.8 per cent. Total aggregate business of PSBs reached Rs 242.27 lakh crore during the period.