Public Sector Banks (PSBs) reported a record aggregate net profit of Rs one point nine eight trillion (tn) in FY 2025–26, marking the fourth consecutive year of aggregate profitability. The performance reflected sustained business growth, improved asset quality and stronger capital positions across the sector. The statement noted that the results demonstrated resilience and enhanced institutional capacity to support credit demand.

Aggregate business rose to Rs 283.3 tn, registering growth of 12.8 per cent year on year. Aggregate deposits increased to Rs 156.3 tn, a rise of 10.6 per cent, reflecting depositor confidence and resource mobilisation. Gross advances expanded to Rs 127 tn, up 15.7 per cent, with broad based credit growth across the Retail, Agriculture and MSME segments. Retail, Agriculture and MSME advances grew by 18.1 per cent, 15.5 per cent and 18.2 per cent respectively, underlining support for entrepreneurship and financial inclusion.

Asset quality improved markedly, with a Gross NPA ratio of one point nine three per cent and a Net NPA ratio of zero point three nine per cent as on 31 March 2026, the lowest levels on record. Provisioning coverage at each bank remained above 90 per cent, reflecting prudent provisioning and stronger risk management. Fresh slippages declined, with the slippage ratio at zero point seven per cent, while total recoveries, including from written off accounts, stood at Rs 869.71 billion (bn). These outcomes supported healthier balance sheets and improved underwriting standards.

Aggregate operating profit reached Rs three point two one tn and aggregate net profit increased by 11.1 per cent, the release added. The aggregate Capital to Risk Weighted Assets Ratio improved to 16.6 per cent, supported by internal accruals, retained earnings and capital raising of Rs 505.51 bn during the year. Operational efficiency improved, with the cost to income ratio at 49.67 per cent, and ongoing reforms and technology adoption were credited with strengthening banks to support growth and the vision of Viksit Bharat by 2047.