Public sector banks (PSBs) in India achieved a record net profit of ₹1.98 trillion ($24 billion USD) in the fiscal year 2026 (FY26), reflecting an 11.12% year-on-year increase from ₹1.78 trillion ($21.5 billion USD) in FY25. This marks the fourth consecutive year of profitability for these banks, as reported by the Ministry of Finance. The State Bank of India (SBI), the largest bank in the country, led the way with its highest-ever annual profit of ₹80,032 crore ($9.6 billion USD), a 12.9% increase from the previous year. Other notable performers included Bank of Baroda with ₹20,021 crore ($2.4 billion USD) and Punjab National Bank with ₹16,904 crore ($2 billion USD) in profits.

The overall business of PSBs increased to ₹283.3 trillion ($3.4 trillion USD), with deposits rising by 10.6% to ₹156.3 trillion ($1.9 trillion USD) and advances growing by 15.7% to ₹127 trillion ($1.5 trillion USD). The asset quality of PSBs also improved, with the gross NPA ratio declining to 1.93% and the net NPA ratio to 0.39% as of March 2026. This improvement is attributed to better recovery mechanisms and a reduction in fresh slippages to 0.7%. The capital position of PSBs remains robust, with a capital to risk-weighted assets ratio of 16.6%, well above the regulatory requirement, enabling continued lending growth. The Ministry emphasized that these results reflect the resilience of the Indian economy and the effectiveness of government reforms aimed at strengthening the banking sector.