Fin min asks PSU banks to be prepared, adaptable in view of West Asia war
This story was originally published at 19:55 IST on 29 May 2026
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NEW DELHI – The finance ministry has asked public sector banks to "maintain preparedness and adaptability" in view of the evolving geopolitical situation due to the war in West Asia, the ministry said in a release Friday.
Department of Financial Services Secretary M. Nagaraju, who reviewed state-owned banks' performance in 2025-26 (Apr-Mar), asked lenders to "adopt prudent expenditure and austerity measures at all levels while maintaining resilience amid evolving global uncertainties," the ministry said. At the meeting, banks were advised to provide proactive and need-based support to eligible borrowers under the Emergency Credit Line Guarantee Scheme 5.0, the ministry said.
Banks were advised to strengthen grievance the redressal mechanisms with adequate oversight, improve operational efficiency, and explore new business opportunities to sustain profitability and long-term growth, the ministry said.
Public sector banks reported an aggregate net profit of INR 1.98 trillion in FY26, with the aggregate business reaching nearly INR 283.3 trillion as of Mar. 31. To make the Indian banking system resilient, Nagaraju asked banks to maintain "robust grievance redressal systems, strong governance standards and operational preparedness".
Department of Financial Services Special Secretary Sanjay Lohiya said that public sector banks should continue leveraging technology responsibly while remaining focused on inclusive growth, customer service, and long-term institutional resilience. End
Reported by Shweta
Edited by Akul Nishant Akhoury
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