Archive · 28 Jul 2026
PSBs post record Rs 1.98 lakh crore profit in FY26
Public Sector Banks (PSBs) in India had their best financial year ever in 2025-26.
They made a record profit of Rs 1.98 lakh crore and had very few bad loans, only 1.9%.
Their total business grew to Rs 283.3 lakh crore, with more deposits and loans.
The banks did well in lending to different sectors like retail, small businesses, agriculture, and infrastructure.
The government's policies, like the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, helped a lot.
Even Regional Rural Banks (RRBs) made a lot of profit, showing overall improvement in the banking sector.
PSBs posted a record net profit of Rs 1.98 lakh crore in FY26.
Gross NPAs declined to a historic low of 1.9%.
Total business of PSBs crossed Rs 283.3 lakh crore.
Credit growth was strong across retail, MSMEs, agriculture, and infrastructure sectors.
Government policies like ECLGS 5.0 boosted credit flow and bank performance.
- Who
- Public Sector Banks (PSBs) and Regional Rural Banks (RRBs)
- What
- Record profit of Rs 1.98 lakh crore and historic low in bad loans
- When
- Fiscal Year 2025-26
- Where
- India
- Why
- Improved asset quality, sustained credit growth, and government policies
Government Policies
Bank Performance
Policy Impact
Government Policies
Government policies like ECLGS 5.0 significantly boosted credit flow and improved bank performance.
Bank Performance
Strong internal reforms and credit discipline primarily drove the record profits and low NPAs.
- Gross Non-Performing Assets (GNPAs)
- 1.9%
- Aggregate Net Profit
- Rs 1.98 lakh crore
- Total Business
- Rs 283.3 lakh crore
- Deposits
- Rs 156.3 lakh crore
- Loans and Advances
- Rs 127 lakh crore
- Capital to Risk-Weighted Assets Ratio (CRAR)
- 16.6%
- Retail Loans Growth
- 19.8%
- MSME Loans Growth
- 19.6%
- Agriculture Loans Growth
- 16.2%
- Infrastructure Loans Growth
- 4.9%
- Emergency Credit Line Guarantee Scheme (ECLGS) 5.0
- Rs 2.55 lakh crore
- RRBs Consolidated Net Profit
- Rs 10,177 crore
