Finance Minister Urges PSBs to Capitalize on RBI's Rate Cut

Finance Minister Nirmala Sitharaman urged public sector banks to leverage RBI's 50 basis points rate cut to enhance credit to productive sectors. She encouraged sustainable profit momentum and financial inclusion, while appreciating the minimal non-performing assets and advising on increasing low-cost deposits.

Finance Minister Nirmala Sitharaman, on Friday, urged public sector banks (PSBs) to harness the Reserve Bank of India's significant 50 basis points rate cut to boost lending towards productive sectors of the economy.

During a performance review meeting with PSBs, Sitharaman instructed bank chiefs to sustain profitability in FY26, citing a notable cumulative profit of Rs 1.78 lakh crore recorded in FY25, marking a 26% growth.

The Minister expected a spurt in credit growth following the RBI's rate slash, also advising banks to enhance their customer base under government schemes to promote financial inclusion. Sitharaman commended the low level of non-performing assets, urging banks to sustain asset quality.

(With inputs from agencies.)