Finance Minister reviews the functioning of PSBs, advises to increase deposits and improve services

Public Sector Banks Review Meet: Finance Minister Nirmala Sitharaman has asked banks to lay emphasis on increasing deposits. Along with this, the Finance Minister has asked the banks to simplify the services keeping in mind the facilities of the customers and focus on the safety of the customers.

According to the Finance Ministry, the Finance Minister held a meeting with the heads of these banks to review the functioning of public sector banks, in which he said these things. Improvement in business sentiment along with better economic conditions and trends were discussed in the meeting. It was said in the review meeting that in terms of all financial parameters, such as credit deployments, profits, asset quality, capital adequacy, it is pointing out that the performance of public sector banks has improved significantly. It was concluded in the meeting that public sector banks have sufficient capital and their financial position has become very strong.

👉 Union Finance Minister Smt. @nsitharaman chairs meeting to review performance of Public Sector Banks #psbs

👉 Major financial parameters viz., credit deployment, profitability, asset quality, capital adequacy etc. indicate the performance of #psbs significantly improved

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— Ministry of Finance (@FinMinIndia) July 6, 2023

It was noted in the meeting that by March 2023, the gross NPA of banks has come down to 4.97 per cent, net NPA has come down to 1.24 per cent, due to which the asset quality of public sector banks has improved significantly. It was also told in the meeting that the profit record of banks in 2022-23 has been Rs 1.05 lakh crore, which is three times the total profit of 2013-14.

According to the Finance Ministry, in the review meeting, bankers believed that due to strong financial health, public sector banks are fully prepared to deal with any macroeconomic shock. The Finance Minister instructed the banks to provide more loans to rural, agricultural as well as different sectors to meet the target along with fulfilling the priority sector lending norms. Also asked to fulfill the target of loan given to street vendors under PMSVANidhi.

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