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2h ago

Sitharaman Touts Resilient Growth as Officials Press Banks to Boost MSME, Education and Farm Loans

At Bank of Maharashtra’s foundation day, leaders pointed to 7.8% April–June GDP growth and recent sovereign upgrades to reinforce stronger balance sheets and a push for more productive credit.

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Overview

  • Nirmala Sitharaman said India’s fundamentals have kept the economy resilient, noting nearly 8% average annual growth since FY22 and 7.8% expansion in the April–June quarter.
  • She cited recent sovereign rating moves—S&P to BBB in August, Morningstar DBRS to BBB in May, and R&I to BBB+—as validation of macro stability.
  • Department of Financial Services Secretary M. Nagaraju urged public sector banks to step up lending to MSMEs, prioritise education loans with no rejections, and expand finance for agriculture while safeguarding asset quality.
  • Officials highlighted stronger public sector banks, with PSBs collectively reporting a record Rs 1.78 lakh crore profit last year and outpacing private banks in credit growth.
  • Bank of Maharashtra was held up as a standout, with RoA at 1.8%, a cost-to-income ratio of 38.4%, a 53.3% CASA ratio, and low gross and net NPAs of 1.74% and 0.18% as of June 30, 2025.