PSBs post record ₹1.98L/cr profit as lending and governance improve
India's Public Sector Banks (PSBs) pulled in a massive ₹1.98 lakh crore profit for 2025-26, their highest ever and fourth straight year in the green.
What's behind the streak? Solid lending to retail, MSMEs, and farmers, plus smarter tech and governance improvements.
The Finance Ministry says it's all about better governance and keeping risk in check.
PSBs' deposits ₹156.3L/cr, loans ₹127L/cr
PSBs grew their total business by nearly 13%, with deposits up to ₹156.3 lakh crore and loans hitting ₹127 lakh crore.
They're also running more efficiently: cost-to-income ratio dropped to 49.67%, while capital buffers look strong at 16.6%.
Bad loans are way down too: gross NPAs fell to just 1.93% and recoveries hit almost ₹87,000 crore, showing these banks are bouncing back stronger than ever.