Finance Minister Nirmala Sitharaman held a meeting with the public sector banking chiefs in the national capital on Friday to review the performance of the PSU banking sector. Finance Minister Pankaj Chaudhary, Financial Services Minister M Nagaraju and other officials in the department, as well as the managing directors and CEOs of several public sector lenders attended the meeting. Several challenges facing PSU Banking Space are expected to be discussed during the deliberations.
The meeting came a few weeks after the Reserve Bank of India (RBI), cutting more than expected 50 benchmark points in key lending rates while changing policy stance to “negative” of “adaptive”. The Reserve Bank of India has also cut its cash reserve ratio (CRR) to improve liquidity in the banking system.
There are 12 public sector banks in the system. Data shows that their total profit reached a record Rs 1.78 crore for the fiscal year ended March 31, 2025, an increase of 26% in the corresponding period a year ago.
12 PSU banks in India | See the list
These banks are:
- SBI
- PNB
- Canara Bank
- Varoda Bank
- United Bank of India
- Punjab and Sindh Bank
- Bank of India
- Bank of India
- Central Bank of India
- Maharashtra Bank (86.46%)
- Overseas Bank of India
- UCO Bank
The meeting between the Finance Minister and the head of the PSU bank was a few days before the new quarterly earnings season began on Dalal Street.
How India’s largest lender SBI does it in fiscal 25
The National Bank of India’s net profit in the fiscal year 2024-25 was Rs 70,901 crore, an increase of 16.1% over the previous year.
Its operating profit exceeds the Rs rupees trademark driven by operating income efficiency and includes operating expenses. It was up 17.9 per cent year-on-year.
The bank’s domestic net interest margin (NIM) is a key measure of profitability, with a fiscal year of 3.22%.
The bank has improved the quality of its assets.
The percentage of total loans for its total non-performing assets (NPAs) fell to 1.82% in FY25, a 42 basis point lower than the previous year. NPA net was 0.47%, down 10 basis points.
