New Delhi: India’s public sector banks (PSBs) delivered a stellar financial performance in the third quarter of the current fiscal, posting a record cumulative profit of Rs 52,603 crore, marking an 18 per cent year-on-year growth, according to stock exchange disclosures.
The strong performance was led by State Bank of India (SBI), the country’s largest lender, which alone accounted for 40 per cent of the total profits earned by PSBs during the quarter.
SBI Drives Profit Growth with Record Earnings
SBI reported a net profit of Rs 21,028 crore in Q3 FY26, the highest ever quarterly profit by the bank. This represents a 24 per cent increase compared to the same quarter of the previous financial year, underlining its dominant role in strengthening public sector banking performance.
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PSBs Earn Rs 44,473 Crore in December Quarter of FY25
All 12 public sector banks together earned Rs 44,473 crore in the December quarter of FY25, resulting in an absolute profit increase of Rs 8,130 crore compared to the corresponding quarter last year.
Indian Overseas Bank, Central Bank Lead Growth in Percentage Terms
Among PSBs, Indian Overseas Bank reported the highest profit growth, with a 56 per cent rise in net profit to Rs 1,365 crore. It was followed by Central Bank of India, which posted a 32 per cent increase in profit to Rs 1,263 crore.
Banks with Strong Profit Expansion
Apart from SBI, several banks reported notable profit growth:
- Bank of Maharashtra: 27 per cent increase
- Canara Bank: 26 per cent increase
- Punjab & Sind Bank: 19 per cent growth
- UCO Bank: 16 per cent growth
- Punjab National Bank (PNB): 13 per cent growth
However, Bank of Baroda, Union Bank of India, Indian Bank, and Bank of India reported single-digit profit growth during the quarter.
Quarterly and Annual Profit Trends
- Q2 FY26: PSBs posted a 9 per cent annual profit growth to Rs 49,456 crore
- Q1 FY26: Profits rose 11 per cent year-on-year to Rs 44,218 crore
For the nine months ended December 2025, PSBs achieved a historic milestone as aggregate profits crossed Rs 1.45 lakh crore for the first time, reaching Rs 1,46,277 crore, a 13 per cent increase over the same period of FY25.
FY26 Profit Likely to Cross Rs 2 Lakh Crore
Financial Services Secretary M Nagaraju expressed confidence that the combined profit of PSBs will exceed Rs 2 lakh crore in FY26.
Highlighting the strength of the banking sector, Nagaraju said credit growth stands at 12 per cent, while deposit growth is at a healthy 10 per cent, reflecting robust demand and financial stability.
Banking Sector Resilient Despite Global Challenges
“The Indian banking sector is in good shape,” Nagaraju said, adding that banks act as a bellwether for the economy’s strength. He emphasized that strong regulatory oversight by the RBI and prudent risk management systems have made PSBs resilient to external economic challenges.
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