FM Nirmala Sitharaman Reviews Public Sector Banks Performance in Delhi

The annual meeting to review the performance of public sector banks for the financial year 2024-25 was held in New Delhi on June 27, 2025. The meeting was chaired by the Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman. The meeting was also attended by Pankaj Chaudhary, Union Minister of State for Finance, M. Nagaraju, Secretary of the Department of Financial Services, and the Managing Directors of 12 public sector banks in India.

Performance of the PSB in the 2024-25 fiscal year

During the meeting, the performance of the 12 public sector banks during the 2024-25 fiscal year was reviewed.

• Total Business of Banks - Rs 251 lakh crore as compared to Rs 203 lakh crore in 2023-24.
• Net Non-Performing Assets (NPA)- declined to 0.52% in 2024-25 as compared to 1.24 % in 2023-24.
• Net Profit - Increased to Rs 1.78 lakh crore in 2024-25 as compared to Rs 1.04 lakh crore.
• Dividend Payout - Increased to Rs 34,990 crore in 2024-25 as compared to Rs 20,964 crore in 2023-24.
• CRAR (Capital to Risk Weighted Asset Ratio)- 16.15 % as of end March 2025.

Sitharaman's Directions to the Banks 

During the meeting, Nirmala Sitharaman directed the banks to focus on certain areas. They are as follows:

• Public sector banks to actively participate in the 3-month Financial Inclusion saturation campaign, beginning July 1, 2025, that will cover 2.7 lakh Gram Panchayats and Urban Local Bodies.
• Need to strengthen the Business Correspondent (BC) network to ensure last-mile access to banking services, especially in rural and remote areas.
• Need to expand branches in the unbanked areas in the Northeast.
• Banks to step up efforts to mobilise deposits, especially in the semi-urban and rural areas, so that they can increase their lending.
• Identify future growth areas that will help the banks grow their profitability.
• Focus on customer satisfaction by providing them with better services and resolving customer grievances more efficiently. 
• She also directed the banks to maintain adequate staff and fill vacancies to provide optimal service to customers.
• Banks need to increase their efforts to meet the targets of key financial inclusion schemes, such as the PM MUDRA Yojana, PM Vishwakarma, PM Surya Ghar Muft Bijli Yojana, PM Vidyalaxmi, and the Kisan Credit Card (KCC) scheme.

About Public Sector Banks 

There are twelve public sector banks in India, in which the Government of India holds the majority of the shares. They are the State Bank of India and 11 Nationalised Banks.

State Bank of India: Headquarters- Mumbai 

Nationalised Banks (11)

Central Bank of India: Headquarters- Mumbai 

Bank of India: Headquarters- Mumbai 

Union Bank of india: Headquarters- Mumbai 

Indian Overseas Bank - Headquarters- Chennai

Indian Bank:  Headquarters- Chennai

UCO Bank - Headquarters-Kolkata

Canara Bank: Headquarters- Bengaluru

Punjab National Bank: Headquarters- New Delhi 

Punjab and Sindh Bank: Headquarters- New Delhi 

Bank of Baroda:  Headquarters- Vadodara

Bank of Maharashtra: Headquarters- Pune