Public Sector Banks have recorded an all-time high net profit of one lakh 98 thousand crore rupees in 2025-26, marking the fourth straight year of profitability. The Union Finance Ministry said, the improved performance demonstrates the resilience, stability and enhanced institutional capacity of Public Sector Banks in supporting the credit needs of a fast-growing Indian economy. The aggregate business of these banks increased to over 283 lakh crore rupees as of March this year, registering growth of 12.8 per cent over the previous year. The aggregate deposits also rose by 10.6 per cent to more than 156 lakh crore rupees, reflecting continued depositor confidence and strong resource mobilisation by Public Sector Banks.
The Ministry said that asset quality of Public Sector Banks has improved significantly during 2025-26, with Gross NPA (Non-Performing Assets) ratio declining to 1.93 per cent. The total recoveries, including recoveries from written-off accounts, stood at 86 thousand 971 crore rupees, reflecting improved recovery mechanisms and better credit discipline across Public Sector Banks. The Ministry said, today, Public Sector Banks are well-capitalised, profitable and institutionally stronger, enabling them to effectively support India’s growth aspirations and contribute meaningfully towards the vision of Viksit Bharat by 2047.
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