The Department of Financial Services (DFS) held a review meeting on 29 May 2026, chaired by Shri M. Nagaraju, Secretary, DFS. The meeting examined the performance of Public Sector Banks (PSBs) for FY 2025‑26.
Key Developments
- A coffee‑table book titled “आपकी पूँजी, आपका अधिकार (Your Money, Your Right)” was unveiled, documenting the campaign to trace and restitute unclaimed assets. Over ₹6,800 crore was returned to nearly 29 lakh claimants in the last six months.
- The DFS website was relaunched with multilingual support in 23 regional languages and accessibility features for visually‑impaired users.
- PSBs reported a record net profit of ₹1.98 lakh crore, the highest ever.
- Aggregate business of PSBs reached ₹283.3 lakh crore as of 31 March 2026.
- Asset quality improved, with Gross Non-Performing Assets (GNPA) falling to a historic low of 1.93 % and Net Non-Performing Assets (NNPA) declining to 0.39 %.
- Progress on financial‑inclusion schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Mudra Yojana (PMMY), and digital lending initiatives was reviewed.
- Digital lending processes now use e‑KYC, paper‑less documentation, and straight‑through processing (STP) to improve speed and customer experience.
Important Facts
- Net profit: ₹1.98 lakh crore (FY 2025‑26).
- Aggregate business: ₹283.3 lakh crore.
- GNPA: 1.93 % (historic low).
- NNPA: 0.39 %.
- Unclaimed asset restitution: ₹6,800 crore to 29 lakh claimants.
- Website available in 23 languages with accessibility options.
Exam Relevance
The data illustrate the impact of government‑driven banking reforms on financial stability, inclusion, and digital transformation—core topics in GS 3: Economy. Understanding PSB performance helps answer questions on fiscal health, asset quality, and the effectiveness of schemes like PMJDY and PMMY. The emphasis on digital interfaces and cyber‑resilience aligns with emerging themes on technology governance and public‑sector accountability.
Way Forward
- Maintain prudent expenditure and austerity while supporting credit flow under ECLGS 5.0.
- Strengthen grievance redressal mechanisms and oversight.
- Accelerate end‑to‑end digital lending journeys, especially for small‑value and welfare‑linked loans.
- Enhance cyber‑security frameworks to safeguard the growing digital ecosystem.
- Continue inclusive outreach through multilingual platforms and accessibility features.
- Monitor global risks, such as the Middle‑East crisis, and ensure operational preparedness.