Finance Minister Nirmala Sitharaman on Friday asked the public sector banks (PSB) to avail a large interest deduction of half percent of the Reserve Bank of India to give more loans to the producing sectors of the economy.
Sources said that during a meeting to review the financial performance of the PSB, Sitharaman also asked his heads to maintain the speed of profit in FY 2025-26.
In FY 2024-25, the total profit of 12 PSB increased to Rs 1.78 lakh crore, which is 26 percent more on an annual basis. During this period, the increase in profit on an annual basis was around Rs 37,100 crore.
According to sources, the Finance Minister hopes that PSB’s debt hike should improve after the RBI’s half percent interest rate deduction. He also emphasized that banks should include more and more customers in the government’s schemes to increase financial inclusion.
During the meeting, a comprehensive review of the progress of various sections and government schemes including Kisan Credit Card, PM Mudra and three Social Security Schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana (APY) was extensively reviewed.