PSBs rocked! Business of 251 lakh crores in FY 2025, created a stir in the market.

Public Sector Banks (PSBs) have presented tremendous performance in the financial year 2024-25. Currently, the total business has increased to Rs 251 lakh crore, which was 203 lakh crores in 2022-23. Let us tell you that during this period the net NPA of the banks also decreased to just 0.52%. That is, the net profit increased to Rs 1.78 lakh crore and dividend payment reached Rs 34,990 crore. These figures came out in the annual review meeting of Finance Minister Nirmala Sitharaman.

The total business of Public Sector Banks (PSBs) has increased from Rs 203 lakh crore in FY 2022-23 to Rs 251 lakh crore in FY 2024-25, while the net non-performing assets (NPA) of PSBs has come down from 1.24 per cent to 0.52 per cent during this period.

This information was given to Union Finance Minister Nirmala Sitharaman during the annual review meeting with bank heads.

During this period, the net profit of public sector banks has also increased from Rs 1.04 lakh crore to Rs 1.78 lakh crore, and dividend payment has increased from Rs 20,964 crore to Rs 34,990 crore.

What did the Finance Minister say?

The Finance Minister was also informed that public sector banks have adequate capital and their CRAR is 16.15 per cent as of March 2025. The Finance Minister reviewed the performance of Public Sector Banks (PSBs) in key areas including financial parameters, credit offtake, financial inclusion, customer service, grievance redressal, digital banking and cyber security.

The Finance Minister, while reviewing deposit and credit trends, emphasized the need for continued efforts to improve deposit mobilization to support the existing credit progress. Banks were directed to enhance efforts under key financial inclusion schemes including Pradhan Mantri Mudra Yojana, Pradhan Mantri Vishwakarma, Pradhan Mantri Surya Ghar Free Electricity Scheme, Pradhan Mantri Vidyalakshmi and Kisan Credit Card (KCC) Scheme.

Focus on running campaigns

Further, PSBs were advised to run special campaigns, make better use of their branch network and increase reach in semi-urban and rural areas. Union Finance Minister Nirmala Sitharaman urged PSBs to actively identify emerging commercial growth areas for the next decade, which can help in profitability and growth for PSBs.

Further, public sector banks were encouraged to focus on agricultural lending in 100 low crop productivity districts identified under the Pradhan Mantri Dhan Dhanya Yojana.

Banks were advised to expand their presence in GIFT City to support India's aspirations in international financial services, take advantage of emerging global opportunities and increase participation in India International Bullion Exchange (IIBX).