Public Sector Banks have shown a strong performance in this Financial Year. Public Sector Banks have posted high Net Profit of Rs 1.98 lakh crore. This is the fourth consecutive year in which PSU Banks have posted profits.
Some important points related to their performance are as follows:
➡️ The total business of PSBs increased to ₹283.3 lakh crore as on 31 March 2026, registering a growth of 12.8% compared to the previous year.
➡️ Total deposits rose by 10.6% year-on-year to ₹156.3 lakh crore.
➡️ Gross advances increased by 15.7% year-on-year and reached ₹127 lakh crore.
➡️ Retail advances grew by 18.1%, agriculture advances by 15.5%, and MSME advances by 18.2%.
➡️ The Gross NPA ratio declined to 1.93%, while the Net NPA ratio fell to 0.39% as on 31 March 2026.
➡️ All PSBs maintained a provisioning coverage ratio above 90%, reflecting careful provisioning practices, better underwriting standards, effective risk management, and stronger balance sheets.
➡️ Fresh slippages continued to decline during FY 2025-26, with the slippage ratio reducing to 0.7%. Total recoveries, including recoveries from written-off accounts, stood at ₹86,971 crore.
➡️ Aggregate operating profit reached ₹3.21 lakh crore, while aggregate net profit increased by 11.1% year-on-year to a record high of ₹1.98 lakh crore.
➡️ The aggregate Capital to Risk Weighted Assets Ratio (CRAR) improved to 16.6% as on 31 March 2026. This was supported by internal accruals, retained earnings, and capital raising of ₹50,551 crore during FY 2025-26. The CRAR of all PSBs remained well above the regulatory requirement of 11.5%, providing enough cushion for future lending growth.
➡️ Operational efficiency of PSBs also improved during the year. The cost-to-income ratio improved to 49.67%.
