Public Sector Banks Log Record Rs 1.78 Lakh Crore Profit In FY25, Up 26% YoY
India’s public sector banks (PSBs) have achieved an all-time high combined net profit of Rs 1.78 lakh crore in the financial year ended March 2025, marking a 26 per cent increase over the previous fiscal, according to figures disclosed through stock exchange filings. The collective profit surged by Rs 37,100 crore from Rs 1.41 lakh crore in FY24, reinforcing the sector's remarkable turnaround from the heavy losses seen just a few years ago.
The State Bank of India (SBI), the country's largest lender, accounted for a major share of the total earnings. SBI alone posted a net profit of Rs 70,901 crore, reflecting a year-on-year growth of 16 per cent compared to Rs 61,077 crore in FY24. The bank contributed more than 40 per cent of the cumulative profits generated by the 12 state-owned banks.
Among the top performers in terms of percentage growth, Punjab National Bank led with an impressive 102 per cent jump in net profit, reaching Rs 16,630 crore. It was followed by Punjab & Sind Bank, which reported a 71 per cent increase, taking its annual profit to Rs 1,016 crore.
PSUs Performance
Several other PSBs also recorded robust growth. Central Bank of India reported a 48.4 per cent rise in profit to Rs 3,785 crore, while UCO Bank and Bank of India saw their profits climb by 47.8 per cent and 45.9 per cent respectively. Bank of Maharashtra and Indian Bank also delivered strong earnings, registering profit growth of 36.1 per cent and 35.4 per cent, respectively.
The stellar financial performance marks a sharp contrast to FY18, when PSBs collectively reported losses amounting to Rs 85,390 crore. This dramatic shift is widely credited to the central government's wide-ranging reform agenda.
The Ministry of Finance implemented a "4R strategy" to address challenges in the banking sector recognition of non-performing assets (NPAs), resolution and recovery of stressed loans, recapitalisation of banks, and sectoral reforms. Under this initiative, the government injected Rs 3.11 lakh crore into PSBs between FY17 and FY21, shoring up their balance sheets and preventing defaults.
In addition to capital support, measures to strengthen credit discipline, foster responsible lending, improve governance, and leverage technology have helped restore financial health. Bank mergers and confidence-building initiatives further contributed to stability in the sector.
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