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Informist, Thursday, Apr. 3, 2025

 

 

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--Govt sources: Fin min, bks discussed fincl inclusion progress
--Govt sources: Fin min, bks discussed progress in new plans from Budget
--Govt sources: Fin min discussed banking sector growth FY26 plans with bks
--Govt sources:Bks highlighted fin min deposit-mobilising plan to better ops
--Govt sources: Mobilising deposits an issue for banking sector

 

NEW DELHI - The finance ministry discussed various strategies with public sector banks and select private sector banks on Thursday to improve deposit mobilisation and scale up operations in 2025-26 (Apr-Mar), senior government sources said. "The banking sector has few issues and deposit mobilisation is one of them," one of the sources cited above told Informist.

 

The government, along with the Reserve Bank of India, have been highlighting over the last one year that banks need to mobilise deposits to strengthen the sector especially because credit growth was outpacing deposit growth, and also to prevent the risk of over participation of retail investors in the equity market.

 

According to the RBI data, banks' credit-deposit ratio was 80.8% at the end of January as against 78.9% on Oct. 4. Former central bank governor Shaktikanta Das, in his last monetary policy statement in December, had said that data suggested the gap between growth of credit and deposits of scheduled commercial bank narrowed with deposits keeping pace with loan growth. "The Reserve Bank's supervision of the financial sector and its entities continues to be vigilant and proactive," he had said.

 

"This (time of the year) is the end of FY25 and also the start of FY26, bankers detailed strategies through which they can mobilise deposits," another source, who was part of the meeting Thursday, added. 

 

These discussions were part of the routine review of banks, government schemes and National Asset Reconstruction Co. Ltd. that the Department of Financial Services held Thursday. Financial Services Secretary M. Nagaraju chaired the meeting, which also saw participation of all chiefs of PSU banks including State Bank of India Chairman C.S. Shetty, representatives from the central bank, and private banks like ICICI Bank and Axis Bank.

 

In the meeting, the finance ministry also nudged banks to work towards increasing penetration of the existing financial inclusion schemes and implement those announced in the Budget for FY26. Representatives from various other government ministries gave a presentation Thursday on the benefits and modalities of various schemes including enhanced credit limit for Kisan Credit Cards, another source said.

 

The finance ministry reviews the performance of government schemes and NARCL from time to time. The last review meeting of the government's schemes was held on Jan. 15, where Nagaraju took stock of the progress of various financial inclusion schemes, including Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand Up India, and PM Vishwakarma.

 

On other hand, the last review of NARCL took place on Dec. 12, where the department stressed the need to expedite the timelines for resolving accounts under NARCL. At that meeting, it was announced that NARCL had acquired 22 accounts with a total exposure of INR 957.11 billion.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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