NewKerala.com

Key Points

India's public sector banks have demonstrated strong financial resilience in the first quarter of 2025-26, collectively earning Rs 44,218 crore. The State Bank of India remains the undisputed leader, contributing nearly half of the total profits with a 12% year-on-year increase. While most banks showed impressive growth, Punjab National Bank stood out as the sole institution reporting a profit decline. The Finance Ministry's upcoming review meeting will critically analyze these performance metrics and chart the banking sector's strategic direction.

Key Points: PSBs Record Rs 44,218 Crore Q1 Profit Amid SBI Leadership

  • SBI contributes 43% of total PSB profits
  • Indian Overseas Bank records highest 76% profit growth
  • PNB only bank reporting profit decline
  • 12 PSBs show 11% earnings increase over previous year
2 min read

Finance Ministry to review Q1 performance of public sector banks on Aug 20

Finance Ministry to review public sector banks' robust Q1 performance with SBI leading 11% profit growth across 12 banks

"The State Bank of India continues to dominate the public banking sector in both size and earnings. - Financial Analysis Report"

New Delhi, Aug 17

The Finance Ministry has called a meeting of the chiefs of public sector banks (PSBs) on Wednesday to review their financial performance for the first quarter of the current financial year.

The meeting will be chaired by Financial Services Secretary M. Nagaraju, according to reports.

Public sector banks have posted strong earnings in the April-June quarter of 2025-26 (Q1 FY26).

Together, the 12 PSBs reported a record profit of Rs 44,218 crore -- reflecting an 11 per cent growth over the same quarter previous year. In comparison, these banks had earned Rs 39,974 crore in the June quarter of 2024-25 -- marking an increase of Rs 4,244 crore in absolute terms.

The State Bank of India (SBI) remained the biggest contributor, accounting for 43 per cent of the total profits.

The country's largest lender posted a net profit of Rs 19,160 crore in the first quarter of FY26, which was 12 per cent higher than the same period the previous year.

The SBI continues to dominate the public banking sector in both size and earnings.

Among other banks, the Indian Overseas Bank recorded the highest growth in profit in percentage terms, with a 76 per cent jump to Rs 1,111 crore.

The Punjab & Sind Bank followed with a 48 per cent rise in profit to Rs 269 crore.

The Central Bank of India also reported a 32.8 per cent growth in net profit to Rs 1,169 crore, while the Indian Bank posted a 23.7 per cent rise to Rs 2,973 crore.

The Bank of Maharashtra registered a 23.2 per cent increase in profit to Rs 1,593 crore.

However, the Punjab National Bank (PNB) was the only lender among the 12 PSBs to report a decline in profit. Its net profit dropped 48 per cent to Rs 1,675 crore compared with Rs 3,252 crore in the same quarter previous year.

The Finance Ministry's review meeting is expected to take stock of these performances, discuss the health of the banking sector, and assess the outlook for the rest of the financial year.

- IANS

Share this article:

Reader Comments

P
Priya S
As a customer of Indian Overseas Bank, I'm thrilled to see their 76% profit growth! Shows what good management can do. Hope they pass some benefits to customers too 😊
A
Aman W
While profits are good, banks should focus more on reducing NPAs and improving customer service. Many branches still have long queues and outdated systems.
S
Shreya B
SBI's performance is impressive but not surprising. They've been digitalizing rapidly. Their YONO app is better than many private bank apps! #DigitalIndia
K
Karthik V
The 48% drop in PNB's profit is concerning. Hope the ministry looks into this specifically. We can't have such fluctuations in our banking system.
N
Nisha Z
Good numbers overall! But I wish banks would reduce home loan interest rates now that they're making such good profits. Housing loans are still too expensive.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50