Summary:

In 2025–2026, Public Sector Banks (PSBs) in India recorded their highest-ever net profit of Rs. 1.98 lakh crore (US$ 22.59 billion), marking the fourth consecutive year of profitability. According to the Ministry of Finance, this performance was fueled by strong business growth, improved asset quality, and increased operational efficiency. Aggregate PSB business increased 12.8% year-overyear to Rs. 156.3 lakh crore (US$ 1.78 trillion), while deposits increased 15.7% to Rs. 127 lakh crore (US$ 1.45 trillion). Strong company development, better asset quality, and increased operational efficiency were the main drivers of this performance, according to the Ministry of Finance. While deposits jumped 10.6% to Rs. 156.3 lakh crore (US$1.78 trillion), aggregate PSB business expanded 12.8% year over year to Rs. 283.3 lakh crore (US$3.23 trillion). Strong credit demand, particularly in the retail, agricultural, and MSME sectors, drove a 15.7% increase in gross advances to Rs. 127 lakh crore (US$1.45 trillion). With GNPA at 1.93% and Net NPA at 0.39%, stress assets saw a significant decline. Profitability and capital strength both greatly increased.

Source: IBEF

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