Finance Ministry Urges Spending Discipline as Banks Post Record ₹1.98 Lakh Crore Profit

In a bid to strengthen confidence amid global uncertainties, the Finance Ministry has urged disciplined fiscal management and bolstered economic resilience, even as India’s banking sector posted a record profit of ₹1.98 lakh crore for the year, driven by higher net interest income and improved asset quality. The ministry emphasised the need for prudent expenditure controls and efficient resource allocation to sustain growth, navigate external volatility, and support priority sectors, while acknowledging the strong performance of banks as a key pillar of financial stability. Banks’ improved profitability reflects robust credit growth, lower provisioning for bad loans, and strengthened balance sheets, positioning the financial system to support credit demand and economic activity amid evolving global and domestic challenges.

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