The Finance Ministry has asked the government banks (PSB) to formulate a strategy to increase its deposit and report soon. The government believes that raising deposits from people has become a major challenge for banks, which cannot be resolved without the right plan. To discuss this subject, a meeting was held under the chairmanship of Financial Services Department (DFS) Secretary M. Nagaraju. It included government banks as well as officials from some private banks.
The meeting stated that the total business of banks has increased by 11% annually, with an increase of 9.8% in deposits. The total business has reached ₹ 242.27 lakh crore. At the same time, debt (loan) given by banks has increased by 12.4%. It has increased retail loan 16.6%, agricultural loans 12.9% and small-convert industries (MSME) to 12.5%.
Order to implement government schemes fast
In the meeting, schemes announced in the budget of 2025-26 were also discussed.
The government has asked banks to implement these schemes fast:
- Home-Stay Loan Under Mudra Scheme
- Credit Guarantee Fund Scheme for Skill Development (CGFSSD)
- Prime Minister Fisheries Kisan Samriddhi Yojana (PM-MKSSY)
- Kisan Credit Card (KCC)
The government wants these schemes to reach more and more people so that they can become financially strong. Public banks earned a profit of ₹ 1,29,426 crore with an increase of 31.3% annually. This is the highest profit ever. Apart from this, the total operating profit of banks has reached ₹ 2,20,243 crore.
Emphasis on fisheries and infrastructure development
The government is also focusing on the development of fisheries and its associated industries. For this, it has been instructed to use Fisheries and Aquaculture Infrastructure Development Fund (Fidf) properly. In addition, the government is planning to launch a digital portal so that people associated with fisheries can easily apply for loan and avail facilities like subsidy.
Warning to NPA and private banks
In the meeting, matters related to National Asset Reconstruction Company LTD (NARCL) were also reviewed. The government has also warned private banks to participate more in financial inclusion schemes. According to sources, the Finance Ministry was angry with the slow participation of private banks and has now been asked to play a more active role in government schemes.
The government wants that banks should not only pay attention to loan, but also raise maximum deposits (deposits) so that they have enough capital. Apart from this, emphasis is also being laid on better implementation of government schemes so that more and more people can take advantage of them.
First Published – April 3, 2025 | 9:13 pm IST
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