Citigroup stock has rallied over 30% this year, outperforming its U.S. banking peers. Analysts at Wells Fargo are bullish, citing improved earnings (EPS of $1.96 in Q2), ongoing restructuring under CEO Jane Fraser, and strong capital deployment through share buybacks. They forecast a 50% upside over the next 12 months, potentially reaching $12 EPS by 2027.
Finance Minister Nirmala Sitharaman, in a meeting with heads of Public Sector Banks (PSBs) on Friday, urged them to leverage the Reserve Bank of India’s recent 50 basis points rate cut to accelerate lending towards the productive sectors of the economy. Sources reported that the Finance Minister asked PSBs to maintain the profitability momentum in FY26, building on their strong performance last year.
The cumulative net profit of 12 PSBs surged to Rs 1.78 lakh crore in FY25, marking a 26% rise compared to the previous fiscal. In absolute terms, this meant a profit increase of about Rs 37,100 crore. Sitharaman also emphasised the importance of financial inclusion, directing banks to onboard more customers under government schemes to ensure broader credit outreach.
On June 6, the RBI’s monetary policy committee, led by Governor Sanjay Malhotra, cut the benchmark repo rate by 50 basis points to 5.5%. The minister highlighted that PSBs should maintain or exceed their FY25 credit growth levels this year, using the rate cut as an opportunity to fuel economic growth and support sectors needing capital infusion.
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