Finance ministry to review PSU banks’ lending to agriculture and MSMEs on May 29

The finance ministry has known as a gathering of heads of public sector banks (PSBs) on May 29 to review credit score circulate to the agriculture and MSME sectors, monetary efficiency and banking operations amid the continuing Center East disaster, PTI reported.The assembly will probably be chaired by Monetary Providers Secretary M Nagaraju, a day earlier than his retirement.In accordance to sources, discussions throughout the review assembly may also cowl the functioning and monetary efficiency of regional rural banks (RRBs), progress on the Jan Samarth portal, AI-related points and digital frauds.There may also be deliberations on restoration mechanisms and progress beneath debt restoration tribunals (DRTs) and the Securitisation and Reconstruction of Monetary Property and Enforcement of Safety Curiosity (SARFAESI) Act.The assembly comes after state-owned banks posted a report mixed web revenue of Rs 1.98 lakh crore in FY26, marking the fourth consecutive 12 months of profitability for PSBs.Improved asset high quality, credit score development and larger revenue helped drive earnings throughout the 12 months.Combination working revenue of PSBs stood at Rs 3.21 lakh crore, whereas web revenue rose 11.1 per cent year-on-year to Rs 1.98 lakh crore.The entire enterprise of PSBs elevated 12.8 per cent to Rs 283.3 lakh crore as of March 31, 2026.Combination deposits rose 10.6 per cent to Rs 156.3 lakh crore, whereas gross advances grew 15.7 per cent to Rs 127 lakh crore, reflecting sustained credit score demand throughout sectors.Asset high quality additionally improved, with gross non-performing property (NPA) ratio declining to 1.93 per cent and web NPA ratio falling to 0.39 per cent on the finish of FY26.Recent slippages declined additional throughout the 12 months, with the slippage ratio decreasing to 0.7 per cent. Whole recoveries, together with written-off accounts, stood at Rs 86,971 crore.