Indian Banks' Financial Triumph: A Beacon for Future Growth

Fitch Ratings has commended Indian banks for their robust financial performances over the fiscal year ending in March 2025, underlining the sector's positive trajectory.

Despite experiencing the slowest loan growth in four years, banks demonstrated enhanced asset quality, stronger capital buffers, and stable profitability.

The outlook for FY26 remains optimistic, though cyclical pressures might dampen earnings. Public sector banks saw a 26% rise in cumulative profit, reaching Rs 1.78 lakh crore, with SBI contributing over 40% of earnings.

(With inputs from agencies.)