Public Sector Banks Record Significant Profit Growth in First Quarter of 2025-26

The finance ministry hosted a crucial meeting on Wednesday to evaluate the financial performance of public sector banks (PSBs) for the first quarter of fiscal 2025-26. Financial Services Secretary M Nagaraju chaired the three-hour session.

The focus was to strategize on enhancing lending to the productive sectors of the economy, according to insiders familiar with the discussions. The review revealed that PSBs, led by the State Bank of India, achieved a staggering profit of Rs 44,218 crore, marking an 11% year-on-year growth.

SBI alone generated a net profit of Rs 19,160 crore, significantly contributing to the sector's earnings. Additionally, Indian Overseas Bank and Punjab & Sind Bank posted impressive percentage growths in net profit, despite some banks like PNB experiencing declines.

(With inputs from agencies.)