Public Sector Banks (PSBs) in India have posted a record cumulative net profit of ₹1.78 lakh crore for the fiscal year 2024–25, marking a 26% increase from the previous year’s ₹1.41 lakh crore, reflecting a strong turnaround in the sector’s financial health.
The jump of ₹37,100 crore year-on-year underscores the sustained recovery of PSBs, which had collectively recorded losses of ₹85,390 crore in FY18. Leading the performance, State Bank of India (SBI) contributed over 40% of total profits, clocking a net profit of ₹70,901 crore, up 16% from FY24.
In terms of growth percentage, Punjab National Bank (PNB) led the pack with a 102% jump in net profit to ₹16,630 crore, followed by Punjab & Sind Bank with a 71% increase to ₹1,016 crore.
Other major gainers included:
- 1)Central Bank of India: up 48.4% to ₹3,785 crore
- 2)UCO Bank: up 47.8% to ₹2,445 crore
- 3)Bank of India: up 45.9% to ₹9,219 crore
- 4)Bank of Maharashtra: up 36.1% to ₹5,520 crore
- 5)Indian Bank: up 35.4% to ₹10,918 crore
Government’s Strategy
This consistent upward trajectory has been credited to the Centre’s comprehensive 4R strategy – Recognition, Resolution, Recapitalisation, and Reform – which aimed to clean up balance sheets, improve governance, and instill fiscal responsibility.
As all 12 PSBs posted profits in FY25, the sector’s transformation stands in stark contrast to its performance seven years ago, showcasing a successful turnaround led by structural reforms and improved asset quality.
