Improved asset high quality, wholesome credit score growth and better earnings contributed to improved profitability of PSBs throughout 2025-26, the ministry mentioned.
Combination working revenue reached Rs 3.21 lakh crore, whereas mixture web revenue elevated by 11.1 per cent y-o-y to a historic excessive of Rs 1.98 lakh crore, marking the fourth consecutive 12 months of mixture profitability for PSBs.
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The combination enterprise of PSBs elevated to Rs 283.3 lakh crore as on March 31, 2026, registering development of 12.8 per cent over the earlier 12 months.
Combination deposits rose 10.6 per cent year-on-year to Rs 156.3 lakh crore, reflecting continued depositor confidence and powerful useful resource mobilisation by PSBs.
Gross advances registered development of 15.7 per cent year-on-year at Rs 127 lakh crore, indicating sustained credit score demand throughout sectors of the economic system.
“Public sector banks (PSBs) continued to register sturdy monetary efficiency throughout 2025-26, reflecting sustained enterprise development, improved asset high quality, report profitability and powerful capital place.
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“The improved efficiency demonstrates the resilience, stability and enhanced institutional capability of PSBs in supporting the credit score wants of a fast-growing Indian economic system,” the ministry mentioned in an announcement.
Asset high quality of PSBs improved considerably throughout 2025-26, with gross NPA ratio (non-perfuming property) declining to 1.93 per cent and web NPA ratio to 0.39 per cent as on March 31, 2026, reflecting traditionally low ranges of careworn property.
Additional, every PSB maintained provisioning protection ratio of above 90 per cent, indicating prudent provisioning practices, improved underwriting requirements, efficient danger administration mechanisms and strengthened steadiness sheet resilience, the ministry mentioned.
Contemporary slippages continued to say no throughout FY 2025′ 26, with slippage ratio decreasing to 0.7 per cent. Whole recoveries, together with recoveries from written-off accounts, stood at Rs 86,971 crore, reflecting improved restoration mechanisms and higher credit score self-discipline throughout PSBs.
The continued enchancment within the efficiency of PSBs displays the resilience of the Indian economic system and the Authorities’s sustained reforms aimed toward strengthening the banking sector via improved governance, expertise adoption, enhanced credit score self-discipline and wider entry to formal credit score. These measures have contributed to decrease careworn property, improved operational effectivity and stronger monetary place of PSBs, the ministry mentioned.
“At the moment, PSBs are well-capitalised, worthwhile and institutionally stronger, enabling them to successfully assist India’s development aspirations and contribute meaningfully in the direction of the imaginative and prescient of Viksit Bharat by 2047,” the ministry added.
