Government asks PSBs to step up lending after RBI's rate cut
NEW DELHI: Govt on Friday nudged banks to step up lending in view of healthy balance sheets and the reduction in interest rates by RBI. While reviewing the performance of state-run banks, finance minister
Nirmala Sitharaman
asked banks to prioritise deposit mobilisation to support credit growth and pushed them to undertake special drives and leverage their massive branch network to raise resources.
During bank-wise presentations, the financial services secretary asked the lenders to make use of the clean books to lend, especially to small businesses. The finance minister flagged the energy sector, especially renewables, as a focus and asked banks to develop a credit model to support small modular nuclear reactors. "Deepening corporate lending in productive sectors was also emphasised, with a strong focus on maintaining robust underwriting and risk management standards," an official statement said.
The finance minister also suggested that banks should "proactively identify" emerging commercial growth areas for the next decade, which can aid profitability and growth. The other important message was on improving customer experience, including in branches and simple online and offline platforms. Sitharaman focused on expanding the branch presence, especially expansion in metro and urban centres.
The comments come at a time when private lenders have stepped up efforts in urban centres, which are seen to be more profitable.
This will mean public sector players will have to double down on effort on this front, while balancing rural and semi-urban focus. In fact, Sitharaman also asked banks to focus on manpower requirements - including existing and arising vacancies - as branches are often not adequately staffed following expansion initiatives.
Several banks have already started initiatives on improving customer service and improving the overall branch experience.
Banks have been instructed to scale up efforts on financial inclusion schemes and expand their presence in GIFT City. Starting Tuesday, govt is launching a three-month financial inclusion saturation drive.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
an hour ago
- Indian Express
Trump plans executive orders to power AI growth in race with China
The Trump administration is readying a package of executive actions aimed at boosting energy supply to power the U.S. expansion of artificial intelligence, according to four sources familiar with the planning. Top economic rivals U.S. and China are locked in a technological arms race and with it secure an economic and military edge. The huge amount of data processing behind AI requires a rapid increase in power supplies that are straining utilities and grids in many states. The moves under consideration include making it easier for power-generating projects to connect to the grid, and providing federal land on which to build the data centers needed to expand AI technology, according to the sources. The administration will also release an AI action plan and schedule public events to draw public attention to the efforts, according to the sources, who requested anonymity to discuss internal deliberations. The White House did not respond to requests for comment. Training large-scale AI models requires a huge amount of electricity, and the industry's growth is driving the first big increase in U.S. power demand in decades. Between 2024 and 2029, U.S. electricity demand is projected to grow at five times the rate predicted in 2022, according to power-sector consultancy Grid Strategies. Meanwhile, power demand from AI data centers could grow more than thirtyfold by 2035, according to a new report by consultancy Deloitte. Building and connecting new power generation to the grid, however, has been a major hurdle because such projects require extensive impact studies that can take years to complete, and existing transmission infrastructure is overwhelmed. Among the ideas under consideration by the administration is to identify more fully developed power projects and move them higher on the waiting list for connection, two of the sources said. Siting data centers has also been challenging because larger facilities require a lot of space and resources, and can face zoning obstacles or public opposition. The executive orders could provide a solution to that by offering land managed by the Defense Department or Interior Department to project developers, the sources said. The administration is also considering streamlining permitting for data centers by creating a nationwide Clean Water Act permit, rather than requiring companies to seek permits on a state-by-state basis, according to one of the sources. In January, Trump hosted top tech CEOs at the White House to highlight the Stargate Project, a multi-billion effort led by ChatGPT's creator OpenAI, SoftBank and Oracle to build data centers and create more than 100,000 jobs in the U.S. Trump has prioritized winning the AI race against China and declared on his first day in office a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online. He also ordered his administration in January to produce an AI Action Plan that would make 'America the world capital in artificial intelligence' and reduce regulatory barriers to its rapid expansion. That report, which includes input from the National Security Council, is due by July 23. The White House is considering making July 23 'AI Action Day' to draw attention to the report and demonstrate its commitment to expanding the industry, two of the sources said. Trump is scheduled to speak at an AI and energy event in Pennsylvania on July 15 hosted by Senator Dave McCormick. Amazon earlier this month announced it would invest $20 billion in data centers in two Pennsylvania counties.
Mint
2 hours ago
- Mint
Bank holiday today: Are banks open or closed on Saturday, June 28? Check here
Bank holiday today: Banks throughout India will be closed today, June 28, 2025, as it is the fourth Saturday of the month. According to the Reserve Bank of India calendar (RBI), banks are closed on the second and fourth Saturdays and all Sundays each month. Usually, banks remain closed on weekends, except on the first, third, and fifth Saturdays. Apart from weekends, banks remain closed for national, regional and religious observances, depending on the state of residence. Therefore, bank holidays differ from state to state in India. Before making a visit to the bank, customers should check with the local bank branch for holiday lists. The next designated bank holiday falls on Sunday, June 29, 2025. In terms of festivals, banks in Aizawl will be closed on Monday, June 29, 2025 due to Remna Ni. Notably, banks will be closed for three consecutive days in Aizawl, including the weekend. For the month of June, banks were scheduled to be closed for four days, apart from weekends. Here's a list of state-wise bank holidays for this month. June 7 (Saturday) — Bakrid (Id-Uz-Zuha) — All banks closed pan-India. June 11 (Wednesday) — Sant Guru Kabir Jayanti / Saga Dawa — Banks will be shut in Sikkim and Himachal Pradesh. June 27 (Friday) — Rath Yatra / Kang (Rathajatra) — Banks closed in Odisha and Manipur. June 30 (Monday) — Remna Ni — Banks closed in Mizoram. Yes, during a bank holiday, online banking services remain accessible across the country even if the nearest branch is closed. Customers can use these services for convenient financial transactions. Requests for fund transfers can be submitted using NEFT/RTGS transfer forms, demand draft request forms, and chequebook forms. Credit cards, debit cards, and ATM cards can be accessed through card services. Additionally, services such as account maintenance forms, setting up standing instructions, and applying for a locker are also available.
India.com
2 hours ago
- India.com
Bank Holidays In July 2025: Banks To Remain Closed On THESE dates—Check State-wise List
New Delhi: Are you planning your bank visits in July 2025? Take note—banks in India will be closed on 13 days this month due to Sundays, second and fourth Saturdays, and various regional holidays. While there's no nationwide public holiday, the Reserve Bank of India (RBI) has shared a detailed list of closures based on its holiday calendar. Bank Closures on Weekends – July 2025 - Sunday Shutdowns: July 6, 13, 20, 27 - Second Saturday Off: July 12 - Fourth Saturday Break: July 26 State-Specific Bank Holidays – July 2025 - July 3 (Thursday): Banks in Tripura (Agartala) will remain shut for Kharchi Puja. - July 5 (Saturday): Jammu & Kashmir observes a holiday for Guru Harobind Ji's Birth Anniversary. - July 14 (Monday): Shillong (Meghalaya) will see bank closures for the Beh Deinkhlam Festival. - July 16 (Wednesday): It's Harela Festival in Dehradun (Uttarakhand) – banks to stay closed. - July 17 (Thursday): Another holiday in Shillong (Meghalaya) for U Tirot Singh's Death Anniversary. - July 19 (Saturday): Tripura (Agartala) banks to remain closed again for Ker Puja. - July 28 (Monday): Gangtok (Sikkim) will observe a holiday on account of Drukpa Tshe-ji. Online Banking will remain functional Online banking, mobile apps, and ATMs will remain available throughout the holidays. However, services like cheque clearance, NEFT, and RTGS may take longer than usual. To avoid delays, it's a good idea to complete important banking tasks before the holiday dates.
