Public Sector Banks Make Record Rs1.98 Lakh Crore Profit – Fourth Year in a Row

WHY THIS MATTERS

The record profit and low bad loans mean:

• Banks are healthier and can lend more

• The government may not need to inject as much capital

• Customers can trust public sector banks more

• The economy gets stronger support from the banking sector

FAQ (FREQUENTLY ASKED QUESTIONS)

Q1: What was the combined net profit of PSBs in FY 2025–26?
A: ?1.98 lakh crore.

Q2: How many consecutive years have PSBs been profitable?
A: Four consecutive years.

Q3: What was the gross NPA ratio of PSBs?
A: 1.93%.

Q4: By what percentage did gross advances grow?
A: 15.7% year-on-year.

Q5: What was the total recovery amount including written-off accounts?
A: Rs86,971 crore.

EXAM-FOCUSED POINTS

• Period:  FY 2025–26

• Combined net profit:  Rs1.98 lakh crore (record)

• Operating profit:  Rs3.21 lakh crore

• Net profit growth:  11.1% year-on-year

• Consecutive profitable years:  4

• Total business (as of 31 March 2026):  Rs283.3 lakh crore (up 12.8%)

• Total deposits:  rs156.3 lakh crore (up 10.6%)

• Gross advances:  ?127 lakh crore (up 15.7%)

• Gross NPA ratio:  1.93%

• Net NPA ratio:  0.39%

• Provisioning coverage ratio:  Above 90% for all PSBs

• Slippage ratio:  0.7%

• Total recoveries (including written-off):  Rs86,971 crore

• Main drivers:  Better asset quality, strong credit growth, higher income