PSBs post highest-ever profit of ₹1.98L/cr amid cleaner balance sheets

Business Jul 28, 2026

Public sector banks (PSBs) just clocked their highest-ever profit: ₹1.98 lakh crore for FY 2025-26, according to the Finance Ministry.

This big jump is thanks to cleaner balance sheets and strong lending across retail, farming, and small business sectors.

PSBs also saw their total business grow 12.8% to ₹283.3 lakh crore, with loans up 15.7% to ₹127 lakh crore by March 2026.

Government launches ECLGS 5.0 ₹2.55L/cr cap

To help businesses facing cash crunches after the West Asia crisis, the government rolled out ECLGS 5.0 in May 2026.

This scheme offers a full guarantee on MSME loans and a 90% guarantee for other sectors like aviation, with a total cap of ₹2,55,000 crore, including ₹5,000 crore set aside for the scheduled passenger airline sector.