Overview

• On June 27, Finance Minister Nirmala Sitharaman chaired the first PSB heads meeting since the RBI’s June 6 monetary easing decision to review FY25 performance.
• Public sector banks recorded a combined profit of Rs 1.78 lakh crore in FY25, a 26 percent increase year-on-year, with SBI contributing over 40 percent of the total.
• The RBI cut its repo rate to 5.5 percent and trimmed the cash reserve ratio to 3 percent, unlocking an estimated Rs 2.5 lakh crore of new liquidity for banks.
• Sitharaman urged PSBs to sustain profitability momentum into FY26 by ramping up credit to agriculture, manufacturing and infrastructure.
• The meeting also evaluated the rollout of Kisan Credit Card, PM Mudra and three social security schemes including PMJJBY, PMSBY and APY.