New Delhi: Public Sector Banks (PSBs) have recorded an all-time high net profit of ₹1.98 lakh crore during the financial year 2025-26, marking the fourth consecutive year of profitability.
According to official data released on Tuesday, the total business of PSBs rose to ₹283.3 lakh crore, registering a year-on-year growth of 12.8 percent. Deposits increased to ₹156.3 lakh crore, while gross advances grew 15.7 percent to ₹127 lakh crore.
PSBs also reported a major improvement in asset quality. The Gross Non-Performing Asset (NPA) ratio declined to 1.93 percent, while the Net NPA ratio dropped to a historic low of 0.39 percent as of March 31, 2026.
Credit growth remained strong across Retail, Agriculture and MSME sectors. Retail advances grew by 18.1 percent, agriculture loans by 15.5 percent and MSME credit by 18.2 percent.
The aggregate operating profit of PSBs stood at ₹3.21 lakh crore. The slippage ratio reduced to 0.7 percent, while recoveries, including written-off accounts, reached ₹86,971 crore.
The capital position of PSBs also remained healthy, with the Capital to Risk Weighted Assets Ratio (CRAR) improving to 16.6 percent, well above regulatory requirements.
The government said continued reforms, improved governance, technology adoption and stronger credit discipline have helped strengthen PSBs and improve their operational efficiency.
