State banks post record Rs 1.98 lakh crore profit FY26 as asset quality and growth surge

Published on 12 May 2026

The win comes with healthier assets

Public sector banks hit an all-time high net profit of Rs 1.98 lakh crore in FY 2025-26, extending four straight years of strong performance. FinMin attributes the jump to improved asset quality, faster credit growth, and higher incomes. With capitalization also strengthened, these banks are expected to back India’s next phase of economic expansion.

Public sector banks recorded an all-time high net profit of Rs 1.98 lakh crore in FY26
Improved asset quality helped sustain the fourth consecutive year of gains
Robust credit growth and higher income boosted overall profitability
Stronger capitalization positions banks to support future economic expansion

#public sector banks #credit growth #banking #asset quality #profit

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State banks post record Rs 1.98 lakh crore profit FY26 as asset quality and growth surge

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