Public Sector Banks (PSBs) in India demonstrated robust financial performance in FY2025-26, achieving a 12.8% year-on-year growth in combined business, reaching ₹283.3 lakh crore. Aggregate deposits rose 10.6% to ₹156.3 lakh crore, reflecting strong depositor confidence. Gross advances surged 15.7% to ₹127 lakh crore, with notable growth in retail loans at 18.1%, agriculture advances at 15.5%, and MSME lending at 18.2%. The Gross Non-Performing Asset (NPA) ratio decreased to 1.93%, while the Net NPA ratio fell to 0.39%, marking historically low levels of stressed assets. The aggregate net profit of PSBs reached ₹1.98 lakh crore, an 11.1% increase from the previous year, marking the fourth consecutive year of profitability. The Capital to Risk Weighted Assets Ratio (CRAR) improved to 16.6%, exceeding regulatory requirements. This performance underscores the essential role of PSBs in supporting economic growth and financial inclusion.