State Banks Record All-Time High Net Profit of ₹1.98 Lakh Crore in FY26, according to data released by India’s Finance Ministry. Public sector banks delivered strong financial performance during the 2025–26 financial year.
The State Banks Record All-Time High Net Profit of ₹1.98 Lakh Crore in FY26, marking an 11.1% increase compared to the previous financial year. This achievement also marks the fourth consecutive year of profitability for public sector banks.
Improved asset quality, steady credit growth, and higher income helped banks post this strong performance. The gross NPA ratio declined to 1.93%, while the net NPA ratio dropped to 0.39%, the lowest levels recorded so far.
Public sector banks also reported an aggregate operating profit of ₹3.21 lakh crore in FY26. Their total business grew to ₹283.3 lakh crore, supported by strong growth in retail loans, agriculture credit, and MSME financing.
The Finance Ministry said reforms, improved governance, and stronger balance sheets helped public sector banks achieve sustainable growth and better financial stability.
