Giriraj Singh flags PSB net profit at record ₹1.98 lakh crore in FY26
Synopsis
Public sector banks in India recorded a net profit of ₹1.98 lakh crore in FY26 — a new high — while gross NPAs fell to 1.9 per cent, Union Textiles Minister Giriraj Singh highlighted on 29 July 2026, citing the data as evidence of a decade-long banking reform payoff.
Key Takeaways
Public sector banks posted a record combined net profit of ₹1.98 lakh crore in FY26.
Gross NPA ratio declined to 1.9 per cent , down from above 14 per cent at the 2017–18 peak.
Union Textiles Minister Giriraj Singh amplified the figures via the NaMo App on 29 July 2026 .
The turnaround follows structural reforms: the Insolvency and Bankruptcy Code (2016) and the merger of 10 PSBs into four entities (2020) .
The RBI's Financial Stability Report will be the next key test of whether the improvement is durable.
India's public sector banks have crossed a milestone that would have seemed implausible a decade ago: a combined net profit of ₹1.98 lakh crore in FY26, even as gross non-performing assets fell to a multi-year low of 1.9 per cent. Union Textiles Minister Giriraj Singh shared the figures on Wednesday, 29 July 2026, amplifying the data via the NaMo App — a signal of how the ruling dispensation is framing the banking turnaround as a governance achievement.
From crisis ledger to record books
The numbers represent a dramatic reversal from the peak NPA crisis of 2017–18, when gross bad loans at state-owned banks breached double digits and the sector's viability was openly questioned. The Reserve Bank of India's Asset Quality Review, launched in 2015, forced banks to surface hidden stress — a painful reckoning that preceded the recovery now reflected in the FY26 figures.
Two structural interventions are most often cited for the turnaround. The Insolvency and Bankruptcy Code, enacted in 2016, gave creditors a time-bound legal route to recover value from defaulters. Then, in 2020, the government merged 10 public sector banks into four larger entities, consolidating balance sheets and reducing duplication. Successive rounds of capital infusion kept the merged banks adequately provisioned through the transition.
Why a Textiles Minister is posting banking data
Singh's decision to amplify PSB profit data is worth noting. As a senior BJP leader and Lok Sabha MP from Begusarai, Bihar, he regularly uses his platform to broadcast economic indicators that reinforce the government's reform narrative — banking health being one of the most politically potent of those indicators. The NaMo App attribution underlines that this is coordinated messaging, not an off-the-cuff observation.
A GNPA ratio of 1.9 per cent is particularly striking context: at the 2018 peak, the ratio for public sector banks stood above 14 per cent. The compression over eight years — driven by recoveries, write-offs, and improved underwriting — is the headline inside the headline.
What the RBI's next stability read will tell us
The RBI's Financial Stability Report will be the authoritative audit of whether FY26's record profit reflects durable balance-sheet strength or is partly a function of a benign credit cycle. Investors and depositors will also watch whether the next Union Budget references the PSB turnaround to justify reduced capital-infusion allocations — the logical fiscal implication of banks that no longer need a government lifeline.
For now, the trajectory is clear: institutions that once required emergency recapitalisation are generating record earnings. That is a structural shift, not a seasonal blip — and the government intends to make sure voters know it.
Point of View
Not just the Finance Ministry's brief. The GNPA figure at 1.9 per cent is the sharper political number — it collapses a decade of NPA crisis into a single, easily communicated data point. The real test, however, is whether the next credit cycle reveals that underwriting discipline has genuinely improved, or whether the clean books partly reflect a long benign period.
NationPress
29 Jul 2026
Frequently Asked Questions
What is the net profit of public sector banks in FY26?
Public sector banks in India reported a record combined net profit of ₹1.98 lakh crore in FY26, according to data shared by Union Textiles Minister Giriraj Singh on 29 July 2026.
What is the current GNPA ratio of public sector banks in India?
The gross non-performing asset (GNPA) ratio of public sector banks fell to 1.9 per cent in FY26 , a sharp decline from the peak of over 14 per cent seen during the 2017–18 NPA crisis.
Why did India's public sector bank NPAs fall so sharply?
The decline is attributed to the Insolvency and Bankruptcy Code (2016) , the merger of 10 PSBs into four larger banks in 2020, successive government capital infusions, and the RBI's Asset Quality Review that forced early recognition and resolution of stressed assets.
Why did Giriraj Singh post about public sector bank profits?
Giriraj Singh , a senior BJP leader and Union Textiles Minister, shared the banking data via the NaMo App as part of the ruling party's broader effort to highlight economic governance achievements across ministerial portfolios.
What should I watch next on India's banking sector health?
The RBI's Financial Stability Report will provide the next authoritative assessment of PSB balance-sheet strength, and the subsequent Union Budget may reflect reduced capital-infusion allocations given the banks' improved profitability.
