Did Public Sector Banks Achieve Record Profits in Q1 FY26?
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Synopsis
Public sector banks in India have made headlines by achieving their highest quarterly profit ever, thanks to the significant contributions from SBI and other key players. This impressive financial performance hints at a resilient banking sector amidst various challenges.
Key Takeaways
- Public sector banks achieved a record profit of Rs 44,218 crore in Q1 FY26.
- State Bank of India was the leading contributor with 43% of total profits.
- 12% year-on-year growth indicates a recovering banking sector.
- Indian Overseas Bank showed the highest growth percentage at 76%.
- PNB was the only bank to report a decline, with a 48% drop in profits.
New Delhi, Aug 8 (NationPress) Public sector banks (PSBs) in India have achieved a remarkable milestone, posting a record combined quarterly profit of Rs 44,218 crore in Q1 FY26, signifying a strong 11 percent increase year-on-year. The State Bank of India (SBI) played a pivotal role in this success, contributing nearly 43 percent of the overall earnings.
In contrast, the 12 PSBs collectively made a profit of Rs 39,974 crore during the same quarter of the previous fiscal year, showcasing an increase of Rs 4,244 crore, as per the disclosures made to the stock exchanges.
The SBI led the charge with a net profit of Rs 19,160 crore for the April–June quarter, which is 12 percent higher than Q1 FY25, solidifying its position as the largest lender in the nation.
In terms of percentage growth, the Indian Overseas Bank was the highest performer, witnessing a substantial 76 percent increase in net profit to Rs 1,111 crore. Following closely was Punjab & Sind Bank, which saw a 48 percent rise in profits, reaching Rs 269 crore.
Other notable performers included the Bank of Maharashtra, reporting a 23.2 percent increase to Rs 1,593 crore, the Indian Bank, which experienced a 23.7 percent growth to Rs 2,973 crore, and the Central Bank of India, whose net profit surged by 32.8 percent to Rs 1,169 crore.
However, the Punjab National Bank (PNB) was an outlier, being the only PSB to report a decline, with its net profit plummeting 48 percent to Rs 1,675 crore, down from Rs 3,252 crore during the same timeframe last year.
Despite individual sector performances varying, the preliminary results reflect the resilience and recovery trajectory of public sector lenders.
Point of View
It is evident that the latest results from public sector banks underscore their resilience and adaptability in a fluctuating economic landscape. The significant profits indicate a recovery momentum, further solidifying the role of these institutions in India's financial ecosystem.
NationPress
02/09/2025
Frequently Asked Questions
What is the total profit reported by public sector banks in Q1 FY26?
Public sector banks reported a total profit of Rs 44,218 crore in Q1 FY26.
Which bank contributed the most to the profits?
The State Bank of India (SBI) contributed nearly 43 percent of the total earnings.
What percentage increase did SBI experience compared to Q1 FY25?
SBI's net profit increased by 12 percent compared to Q1 FY25.
Which bank had the highest percentage growth in profits?
The Indian Overseas Bank had the highest percentage growth with a 76 percent increase.
Did any public sector bank report a decline in profits?
Yes, Punjab National Bank (PNB) reported a decline of 48 percent in net profit.
