Banks Boosted by Budget: Sitharaman Sets Strategic Goals in Review Meet

New Delhi: Finance Minister Nirmala Sitharaman conducted a comprehensive review meeting with senior officials from public sector banks on Monday, addressing a wide range of topics, including boosting deposits, enhancing digital payments, strengthening cyber security, and expanding credit products and schemes. The Finance Minister highlighted the need for closer cooperation among banks, the government, regulators, and security agencies to combat fraud and cyber threats.

Sitharaman emphasised the importance of swiftly implementing budget announcements through banking channels. She urged banks to prioritise key initiatives such as the PM Surya Ghar Mukt Bijli Yojana and the PM Vishwakarma Yojana. The meeting was attended by bank chiefs, alongside secretaries Vivek Joshi and M Nagaraju, and officials from the Department of Financial Services.

Expressing satisfaction with the performance of public sector banks in FY 2024, Sitharaman noted improvements in asset quality and a reduction in net Non-Performing Assets (NPAs) to 0.76 percent. The sector’s overall net profit stood at ₹1.45 lakh crore, with ₹27,830 crore distributed as dividends. She also commended the banks’ successful capital-raising efforts and robust credit growth. However, the Finance Minister emphasised the need for banks to accelerate efforts to increase deposits.

During the meeting, Sitharaman urged banks to focus on enhancing customer service while staying updated with changes in the banking sector. She stressed the importance of regularly updating IT systems to counter emerging cyber threats. Additionally, banks were encouraged to bolster financial support for MSMEs and to ensure prompt provision of documents to customers who have cleared their loans.

The Finance Minister reiterated the importance of adhering to Reserve Bank of India (RBI) guidelines and maintaining a proactive approach towards sectoral advancements. The discussions reflected the government’s commitment to fostering a secure, resilient, and growth-oriented banking environment.