Overview

• The meeting on June 27 was the first formal follow-up between the finance ministry and chiefs of all 12 public sector banks since the RBI’s June 6 repo rate and CRR cuts.
• Sitharaman noted PSBs’ strong capital buffer with a capital-to-risk weighted assets ratio of 16.15% as of March 2025.
• She directed banks to leverage cheaper funds to expand lending to productive segments such as MSMEs, infrastructure and emerging commercial sectors.
• The finance minister called for ramped up enrolment in flagship schemes including Kisan Credit Card, PM Mudra and social security plans to deepen financial inclusion.
• PSBs were advised to mobilise more low-cost deposits to support sustained credit growth with surplus system liquidity.