How Have India’s PSUs and PSBs Evolved into Wealth Creators in the Last 11 Years?
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Synopsis
Discover how the Modi administration has revolutionized India's public sector undertakings and banks over the past eleven years, transforming them into significant wealth generators for the economy. This article explores impressive market cap growth and profit increases that have solidified their role in the nation's economic framework.
Key Takeaways
- Significant growth in market capitalization of PSUs over 11 years.
- PSBs have transitioned from crisis to profitability through reforms.
- Major PSUs recorded impressive profits in 2024-25.
- Government strategies have enhanced economic stability.
- Public sector plays a vital role in national development.
New Delhi, June 11 (NationPress) The government led by Prime Minister Narendra Modi has significantly bolstered India’s public sector undertakings (PSUs) over the past eleven years, transforming them into vital contributors to the nation’s economic growth, as highlighted by the data-centric X handle infoindata on Wednesday.
Through targeted reforms, enhanced strategic independence, and financial backing, the market capitalization of PSUs has notably increased across the energy, power, and infrastructure domains.
For instance, NTPC saw its market cap soar to Rs 3.27 lakh crore in 2025, up from Rs 0.99 lakh crore in 2014, while Power Grid reached Rs 2.80 lakh crore from Rs 0.55 lakh crore in the same timeframe (as of June 9), based on data from DIPAM and the Department of Public Enterprises.
Other key PSUs, including IOCL, Power Finance, BPCL, GAIL, NHPC, and BHEL, also experienced significant growth in their market valuations over the last eleven years.
Additionally, the market capitalization of public sector banks (PSBs) also saw remarkable growth during this period.
The State Bank of India (SBI) achieved a market cap of Rs 7.32 lakh crore in FY26, up from Rs 1.51 lakh crore in FY16.
PNB increased its market cap to Rs 1.29 lakh crore in FY26 from Rs 0.06 lakh crore in FY16, while Bank of Baroda saw its market cap grow from Rs 0.34 lakh crore to Rs 1.28 lakh crore in the same period, according to the data.
“In just 11 years, the Modi administration has transformed public sector banks from the NPA crisis of the UPA era to unprecedented market capitalisation through comprehensive reforms, including asset quality reviews, bank mergers, targeted recapitalisation, and strategies to address bad loans,” stated infoindata on X.
In the meantime, leading public sector corporations in the financial, power, and energy sectors reported substantial profit growth for the January-March quarter of 2024-25, which is anticipated to further fortify the government’s fiscal health.
The largest lender, SBI, and the insurance behemoth Life Insurance Corporation of India (LIC) spearheaded this growth, registering net profits of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI's net profit for FY 2024-25 has now surged to Rs 70,901 crore, while LIC reported an impressive net profit of Rs 48,151 crore.
In the energy sector, Coal India recorded a net profit of Rs 9,604 crore during the fourth quarter, whereas Indian Oil Corporation (IOC) achieved a net profit of Rs 7,265 crore, and upstream oil giant ONGC reported a net profit of Rs 6,448 crore during the same quarter.
In the power sector, NTPC, the country's largest electricity producer, reported a net profit of Rs 7,897 crore, while Power Finance Corporation (PFC), also under the Ministry of Power, earned a commendable Rs 8,358 crore. Power Grid Corporation of India also posted a strong profit of Rs 4,143 crore in the January-March quarter.
Point of View
The transformation of India's public sector under Modi's leadership underscores a commitment to strategic growth. The data reflecting increased market capitalization and profits from PSUs and PSBs not only highlights economic resilience but also builds trust in governance. This narrative aligns with the nation's aspirations for progress and sustainability.
NationPress
12/06/2025
Frequently Asked Questions
What is the impact of PSUs on India's economy?
Public Sector Undertakings (PSUs) have become crucial for India's economic growth, contributing significantly to market capitalization and providing jobs, thereby enhancing overall economic stability.
How have public sector banks improved under the Modi government?
Public sector banks have undergone significant reforms, including asset quality reviews and mergers, transforming them from a state of crisis to strong financial entities with record market capitalization.
What are the market cap figures for major PSUs?
NTPC's market cap soared to Rs 3.27 lakh crore and Power Grid reached Rs 2.80 lakh crore in 2025, showcasing substantial growth from previous years.
How profitable are India's leading PSUs?
India's leading PSUs, like SBI and LIC, have recorded impressive profits, with SBI generating Rs 70,901 crore and LIC Rs 48,151 crore for FY 2024-25.
What role do PSUs play in national development?
PSUs are integral to national development by driving investments, creating jobs, and contributing to the GDP, thus playing a pivotal role in India's economic landscape.
