Record Profits for Public Sector Banks

Public sector banks (PSBs) in India have reported a historic cumulative net profit of Rs 1.78 lakh crore for the fiscal year ending March 2025, showcasing a remarkable 26% increase from the previous year. This achievement marks a significant turnaround from the losses experienced in FY18, with all 12 PSBs posting profits.

Leading the Charge: State Bank of India

The State Bank of India (SBI), the country's largest lender, contributed over 40% of the total PSB earnings, with a standalone net profit of Rs 70,901 crore, a 16% increase from FY24.

Notable Performances

Punjab National Bank led with a 102% rise in net profit to Rs 16,630 crore, followed by Punjab & Sind Bank with a 71% increase to Rs 1,016 crore. Other banks also showed significant growth, highlighting the sector's robust recovery.

Reforms Behind the Success

The banking sector's revival is attributed to the government's 4R strategy and a Rs 3,10,997 crore recapitalization plan between FY17 and FY21, alongside reforms in lending, governance, and digitization.