DFS Secretary Reviews Public Sector Banks’ Performance for H1 FY 2025–26
The Secretary of the Department of Financial Services, Shri M. Nagaraju, chaired a review meeting in New Delhi with Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) to assess their performance for the first half of FY 2025–26. The review covered financial indicators, asset quality, recoveries, digital transformation, and implementation of key government schemes.
PSBs reported a net profit of ₹93,675 crore during H1 FY 2025–26, reflecting strong year-on-year growth. Aggregate business stood at ₹261 lakh crore as of September 2025, with advances growing 12.3% and deposits 9.6% year-on-year. The Gross NPA ratio fell to a multi-year low of 2.30%, and Net NPAs declined to 0.45%. Return on Assets stood at 1.08%, and the cost of funds improved to 4.97%, indicating enhanced efficiency.
The DFS Secretary urged banks to sustain credit expansion in MSME and agriculture sectors, strengthen risk management, and adopt prudent underwriting practices. He emphasised the importance of inclusive and secure digital banking, cybersecurity, and grievance redressal. The review also included a presentation by UIDAI on Aadhaar integration and discussions on the convergence of human and artificial intelligence in banking.
Progress under key schemes such as PM Surya Ghar Muft Bijli Yojana, PM Vishwakarma Yojana, PM Vidya Lakshmi Yojana, and JanSamarth initiatives was evaluated. Banks were advised to intensify outreach under financial inclusion programmes like PMJDY, PMJJBY, PMSBY, APY, PMMY, and PM SVANidhi. The Secretary highlighted the need for greater awareness of the integrated unclaimed asset portal and deeper engagement in aspirational districts.
On asset quality, PSBs recorded continued improvement, aided by recoveries through the National Asset Reconstruction Company Limited (NARCL), which has acquired ₹1.62 lakh crore in bad loans. Banks were encouraged to utilise platforms like BAANKNET for faster resolutions and to adopt robust early warning systems.
In line with the vision of Viksit Bharat @2047, PSBs showcased initiatives in champion sectors including renewable energy, green infrastructure, food processing, tourism, and data centres. The meeting concluded with the launch of the Startup Loans module on the JanSamarth Portal and the release of the PSB Manthan 2025 report, mapping the roadmap for India’s banking transformation.
Cabinet Approves Credit Guarantee Scheme for Exporters (CGSE)
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE), providing 100% credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs). The scheme aims to facilitate additional collateral-free credit support of up to ₹20,000 crore to eligible exporters, including Micro, Small and Medium Enterprises (MSMEs).
The Department of Financial Services (DFS) will implement the scheme through NCGTC, under the supervision of a management committee chaired by the Secretary, DFS. The initiative is expected to enhance exporters’ global competitiveness, support market diversification, and strengthen liquidity, contributing to India’s journey toward the USD 1 trillion export target and Aatmanirbhar Bharat.
Exports account for nearly 21% of India’s GDP in FY 2024–25 and directly and indirectly employ over 45 million people. MSMEs contribute around 45% of total exports. The CGSE will provide enhanced liquidity support to enable exporters to diversify markets and sustain business growth.
DFS Launches Startup Common Application Journey on JanSamarth Portal
The Department of Financial Services, Ministry of Finance, has launched the Startup Common Application Journey on the JanSamarth Portal to provide startups with a unified digital platform to access credit from all Public Sector Banks. The application was inaugurated by Shri M. Nagaraju, Secretary, DFS, in the presence of senior officials, the Chairman of the Indian Banks’ Association (IBA), Managing Directors and CEOs of PSBs, and representatives from the PSB Alliance.
Developed jointly by the IBA and PSB Alliance, the platform allows startups to apply for loans, compare offers, and track application status seamlessly. It is supported by a Model Loan Scheme offering credit up to ₹20 crore under the Credit Guarantee Scheme for Startups (CGSS) administered by NCGTC under the Department for Promotion of Industry and Internal Trade (DPIIT). The system integrates multiple data sources including PAN, GST, Udyam, ITRs, and Credit Bureaus, ensuring faster processing and greater transparency. Special interest rate concessions are extended to women entrepreneurs, fostering inclusivity in the startup ecosystem.
This digital initiative marks a significant milestone in building a technology-driven, collaborative financing ecosystem for startups, aligning with the national goal of Viksit Bharat 2047.
DRI Cracks Down on Major Gold Smuggling Syndicate in Mumbai
The Directorate of Revenue Intelligence (DRI) has dismantled a large gold smuggling and melting network in Mumbai under “Operation Bullion Blaze”. Acting on specific intelligence, DRI officers conducted simultaneous searches on 10 November 2025 at four locations, including two illegal melting units and two unregistered shops.
Both furnaces were found operational with complete setups for melting smuggled gold. The raids led to the recovery of 6.35 kg of gold on-site, followed by an additional seizure of 5.53 kg of gold bars from one of the linked shops. In total, 11.88 kg of 24-carat gold valued at ₹15.05 crore and 8.72 kg of silver worth ₹13.17 lakh were seized under the Customs Act, 1962.
Eleven individuals, including the mastermind, his father, a manager, four melters, an accountant, and three delivery agents, were arrested. All have been remanded to judicial custody by the Judicial Magistrate First Class, Mumbai. Preliminary investigations revealed a sophisticated network engaged in smuggling and illicit trade of gold to evade government duties and manipulate the domestic bullion market.
The DRI reaffirmed its commitment to combat organised smuggling networks that undermine lawful trade and government revenue. The agency continues to strengthen enforcement actions to protect India’s fiscal stability and ensure a transparent and compliant trading ecosystem.