The finance ministry on Friday asked public sector banks (PSBs) to adopt prudent expenditure and austerity measures at all levels while maintaining resilience amid evolving global uncertainties, even as it reviewed their record financial performance in FY26, PTI reported.Financial Services Secretary M Nagaraju, while chairing a meeting to review the financial performance of PSBs, advised banks to provide proactive and need-based support to eligible borrowers under ECLGS 5.0, strengthen grievance redressal mechanisms with adequate oversight, improve operational efficiency and explore new business opportunities to sustain profitability and long-term growth.Banks were also advised to maintain preparedness and adaptability in view of the recent crisis in the Middle East and the evolving global situation, according to a finance ministry statement.The meeting comprehensively assessed PSBs’ performance across business growth, profitability, asset quality, implementation of government schemes, financial inclusion, digital ecosystem, MSME credit flow, cyber resilience and operational risk management.It was highlighted that public sector banks delivered strong financial and operational performance during FY26.Aggregate business of PSBs reached around Rs 283.3 lakh crore as of March 31, 2026, while aggregate net profit rose to around Rs 1.98 lakh crore, the highest-ever annual net profit recorded by public sector banks.Asset quality also remained robust, with Gross Non-Performing Assets (GNPA) touching a historic low of 1.93 per cent and Net Non-Performing Assets (NNPA) declining to 0.39 per cent, reflecting continued strengthening of balance sheets and prudent risk management practices.Progress under major financial inclusion initiatives, including Pradhan Mantri Jan Dhan Yojana, social security schemes, Pradhan Mantri Mudra Yojana, PM Vishwakarma and digital lending programmes, was also reviewed during the meeting.The ministry said public sector banks continue to play a pivotal role in expanding financial access and strengthening last-mile delivery of banking services across the country.The status of implementation of end-to-end digital lending journeys for small-value loans and welfare-linked schemes was also reviewed.PSBs highlighted measures such as paperless processing through e-KYC and digital documentation, straight through processing (STP) and integration with government platforms to improve accessibility and customer experience.Deliberations also covered strengthening digital banking ecosystems, enhancing cyber security frameworks and improving access to credit for MSMEs and other productive sectors of the economy.During the meeting, a coffee table book titled ‘Aapki Poonji, Aapka Adhikar (Your Money, Your Right)’ was unveiled.The publication captures the nationwide campaign undertaken to empower citizens to identify and reclaim unclaimed financial assets. It also highlights collaborative efforts by banks, financial institutions, regulators and other stakeholders towards facilitating tracing, claim settlement and restitution of unclaimed financial assets to their rightful owners.According to the ministry, more than Rs 6,800 crore has been restituted to nearly 29 lakh claimants across the country over the past six months.The revamped website of the Department of Financial Services was also launched during the meeting.Designed with a citizen-centric approach, the portal offers enhanced accessibility, seamless navigation and improved dissemination of information. The website is available in 23 regional languages and incorporates accessibility features for persons with visual impairments, reinforcing the government’s commitment to inclusive, accessible and citizen-centric digital service delivery.Nagaraju also underscored the importance of maintaining robust grievance redressal systems, strong governance standards and operational preparedness to ensure that the banking system remains resilient, trusted and aligned with the vision of Viksit Bharat 2047.Addressing the meeting, Special Secretary Sanjay Lohia highlighted the importance of strengthening institutional capabilities, operational efficiency and innovation-driven banking practices to meet the evolving requirements of a rapidly transforming financial ecosystem.Lohia emphasised that PSBs should continue leveraging technology responsibly, while remaining focused on inclusive growth, customer service and long-term institutional resilience.