New Delhi, June 11 -- Finance minister Nirmala Sitharaman will meet the heads of public sector banks (PSBs) in July to review emerging stress in loan portfolios amid uncertainty stemming from the West Asia conflict and broader global economic risks, according to two people aware of the matter.

The review comes as the finance ministry steps up scrutiny of potential vulnerabilities in retail, micro, small, and medium enterprises (MSMEs) and agriculture lending, even as state-run banks continue to report strong profitability, healthy credit growth and improving asset quality.

"The meeting will be attended by the managing directors and chief executives of all 12 public sector banks, along with representatives of the Indian Banks' Associatio...