State-Owned Banks: Driving Financial Transformation

The finance ministry has urged state-owned banks to boost credit for MSMEs and the agriculture sector while improving digital banking and operational risk management. Public sector banks have shown advancement in asset quality and profitability, with a focus on sustainable financing to support India's economic vision.

The finance ministry has called on state-owned banks to expedite credit distribution to MSMEs and the agriculture sector. During a recent review meeting, DFS Secretary M Nagaraju emphasized the need for enhanced risk management and operational resilience to maintain profitability in a dynamic financial environment.

Public sector banks showcased their progress in digital banking services, which Nagaraju insisted should be inclusive and secure. He urged banks to improve cyber resilience and grievance redressal while adopting AI and data analytics to elevate customer service delivery.

The meeting also highlighted ongoing government initiatives and emphasized digital platforms for asset recovery and early warning systems to ensure seamless implementation and improve public awareness.

(With inputs from agencies.)