India Directs State-Run Banks to Optimize Resources, Boost Cybersecurity

India’s Financial Services Secretary has urged state-run banks to streamline resource allocation, reduce intermediation costs, and prioritize capital-raising strategies to sustain growth. This follows a March 4, 2025, review meeting where public sector banks (PSBs) reported record ₹1.29 lakh crore net profit in FY25’s first nine months, alongside a 0.59% net NPA ratio. Banks are advised to draft capital-raising roadmaps via market instruments, aligning with RBI’s infrastructure financing guidelines for risk-managed lending. Simultaneously, PSBs must bolster cybersecurity frameworks, adopting proactive measures like SBI’s Risk Monitoring and fintech collaborations to counter rising digital frauds, as highlighted in a recent DFS-led meeting with RBI, NPCI, and major banks.

 

Sources: Ministry of Finance, PIB, RBI, NSE/BSE filings