FM tells PSBs to diversify deposit, asset base amid global financial stress

Use the crisis to frame detailed crisis management strategies, FM to bankers

Finance Minister Nirmala Sitharaman on Saturday emphasised Public Sector Banks (PSBs) to be prepared amid global financial stress and adhere to the regulatory framework by focusing on risk management, diversification of deposits and asset base.

The meeting was meant to review the performance of PSBs on various financial health parameters and the resilience of PSBs in the backdrop of bank failures in the United States, and UBS’ acquisition of crisis-hit Credit Suisse.

“PSBs must look at business models closely to identify stress points, including concentration risks and adverse exposures. They should use this opportunity to frame detailed crisis management and