How Much Did Public Sector Banks Raise in Equity and Bonds?
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Synopsis
Discover how public sector banks have raised a staggering Rs 1.54 lakh crore in equity and bonds over three financial years. This remarkable growth showcases the strength and resilience of the banking sector in India, boosting investor confidence and setting the stage for future financial endeavors.
Key Takeaways
- PSBs raised Rs 1,53,978 crore in equity and bonds over three years.
- Capital raised supports credit growth and regulatory needs.
- Investor confidence in PSBs remains strong, allowing for successful capital raising.
- The SBI reported a net profit of Rs 19,160 crore in Q1 FY26.
- PSBs collectively achieved a profit increase of 11 percent year-on-year.
New Delhi, Aug 18 (NationPress) Public sector banks (PSBs) have successfully raised a total of Rs 1,53,978 crore through equity and bonds over the past three fiscal years, as reported in Parliament on Monday.
The cumulative capital raised by PSBs from FY2022-23 to FY2024-25 includes Rs 44,942 crore in FY2022-23, Rs 57,380 crore in FY2023-24, and Rs 51,656 crore in FY2024-25, according to Minister of State for Finance, Pankaj Chaudhary, in a written response to a Lok Sabha inquiry.
This newly raised capital serves multiple purposes, such as fulfilling banks' capital requirements to support credit expansion, adhering to regulatory capital adequacy standards, meeting minimum public shareholding regulations by augmenting public ownership, and enhancing the overall capital position of the banks.
To fulfill their capital needs, PSBs actively seek capital from the market. The strong financial foundation of these banks has instilled confidence among investors, allowing them to effectively raise funds.
The minister elaborated that banks acquire capital through equity and Basel III-compliant Additional Tier-I and Tier-II bonds.
In a related development, the Finance Ministry has scheduled a meeting with the heads of PSBs this week to evaluate their financial performance for the first quarter of the current fiscal year (FY26).
The upcoming review meeting is expected to address the banking sector's health and forecast its performance for the remainder of the financial year.
In the April-June quarter of 2025-26 (Q1 FY26), PSBs reported impressive earnings. Collectively, the 12 PSBs achieved a record profit of Rs 44,218 crore, representing an 11 percent increase compared to the same quarter last year.
In contrast, these banks had recorded a profit of Rs 39,974 crore during the June quarter of 2024-25, reflecting an absolute increase of Rs 4,244 crore.
The State Bank of India (SBI) emerged as the largest profit contributor, accounting for 43 percent of total profits. The nation’s largest bank reported a net profit of Rs 19,160 crore in Q1 FY26, which is 12 percent higher than the corresponding period last year.
Point of View
The recent capital raise by public sector banks highlights their strengthening position in the financial sector. This trend not only reflects the confidence of investors but also showcases the banks' ability to meet regulatory standards while supporting economic growth. As these institutions continue to thrive, it is imperative for them to maintain transparency and accountability to sustain this momentum.
NationPress
08/10/2025
Frequently Asked Questions
What is the total amount raised by public sector banks?
Public sector banks raised a total of Rs 1,53,978 crore in equity and bonds over the last three financial years.
What purposes does the raised capital serve?
The capital raised is used for supporting credit growth, meeting regulatory capital adequacy requirements, and enhancing public shareholding.
Which bank contributed the most to the profits?
The State Bank of India (SBI) was the largest contributor, accounting for 43% of total profits.
What was the profit reported by PSBs in Q1 FY26?
In Q1 FY26, public sector banks reported a record profit of Rs 44,218 crore.
