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Key Points

The Modi government’s reforms have transformed India’s PSUs and PSBs into wealth creators over the last 11 years. NTPC, SBI, and LIC saw exponential market cap growth, with SBI’s valuation rising nearly fivefold. Energy and power PSUs like Coal India and NTPC posted strong quarterly profits, boosting fiscal health. Structural reforms, including bank mergers and bad loan resolution, revived public sector banks from the UPA-era NPA crisis.

Key Points: Modi Govt Turns PSUs and PSBs Into Wealth Creators in 11 Years

  • NTPC market cap rose from ₹0.99L cr to ₹3.27L cr in 11 years
  • SBI’s market cap hit ₹7.32L cr in FY26 from ₹1.51L cr in FY16
  • LIC and SBI led profits with ₹19,013 cr and ₹18,643 cr in Q4 FY25
  • Power and energy PSUs like Coal India, IOC, ONGC posted strong quarterly earnings
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India's PSUs and PSBs turn into wealth creators in last 11 years

India’s PSUs and PSBs saw market cap surge under Modi govt reforms, with NTPC, SBI, and LIC leading record profits.

"In 11 years, the Modi government transformed public sector banks from the NPA crisis of the UPA era to record market capitalisation. – infoindata"

New Delhi, June 11

The Prime Minister Narendra Modi-led government has strengthened India’s public sector undertakings (PSUs) in the last 11 years, turning them into wealth creators and making them integral to the nation’s growth, the data-focused X handle infoindata showed on Wednesday.

With focused reforms, strategic autonomy, and capital support, PSU market cap surged across the energy, power, and infrastructure sectors.

While NTPC saw its market cap reach Rs 3.27 lakh crore in 2025, from 0.99 lakh crore in 2014, Power Grid saw its market cap touch Rs 2.80 lakh crore in 2025, from 0.55 lakh crore in 2014 (till June 9), as per data sourced from the DIPAM and the Department of Public Enterprises.

Other PSUs like IOCL, Power Finance, BPCL, GAIL, NHPC, BHEL, etc, also saw a meteoric rise in their market caps in the last 11 years.

On the other hand, the market cap of public sector banks (PSBs) also surged in the last 11 years.

The SBI saw its market cap reach Rs 7.32 lakh crore in FY26, from Rs 1.51 lakh crore in FY16.

PNB saw its market cap touch Rs 1.29 lakh crore in FY26 from 0.06 lakh crore in FY16, while Bank of Baroda's market cap reached Rs 1.28 lakh crore from 0.34 lakh crore in the same time frame, as per the data.

"In 11 years, the Modi government transformed public sector banks from the NPA crisis of the UPA era to record market capitalisation through structural reforms such as asset quality review, bank mergers, targeted recapitalisation, and measures to resolve bad loans," said infoindata on X.

Meanwhile, India’s top public sector companies in the financial, power and energy sectors recorded a robust growth in profit during the January-March quarter of 2024-25, which is expected to further strengthen the government’s fiscal position.

The country’s largest lender, State Bank of India (SBI), and insurance giant Life Insurance Corporation of India (LIC) led the charge with a net profit of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI's net profit for the financial year 2024-25 has now soared to Rs 70,901 crore, while LIC has recorded an impressive net profit of Rs 48,151 crore for the year.

In the energy sector, Coal India earned a net profit of Rs 9,604 crore during the fourth quarter, while Indian Oil Corporation (IOC) registered a net profit of Rs 7,265 crore, with upstream oil exploration giant ONGC registering a net profit of Rs 6,448 crore during the quarter.

In the power sector, the country’s largest electricity producer, NTPC, recorded a net profit of Rs 7,897 crore, while Power Finance Corporation (PFC), which also comes under the Ministry of Power, earned a robust Rs 8,358 crore. Power Grid Corporation of India also registered a strong profit of Rs 4,143 crore during the January-March quarter.

- IANS

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Reader Comments

R
Rahul K.
This is truly impressive growth! As someone who invested in PSU stocks in 2019, I've seen 4x returns. The reforms in banking sector especially have been game-changing. Hope this wealth creation benefits all Indians through better infrastructure and services 🇮🇳
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Priya M.
While the numbers look good, I wish some of these profits were used to reduce electricity tariffs for common people. My monthly bill has doubled in 5 years despite these companies making record profits. Still, better than the UPA era when banks were drowning in NPAs!
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Amit S.
The turnaround of PSU banks is nothing short of miraculous! Remember when we used to joke about "SBI - Still Being Investigated"? Now it's become a bluechip stock. Kudos to the government for professionalizing these institutions 👏
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Neha T.
As a banker, I've seen firsthand how the mergers and digital transformation have improved efficiency. But we must ensure this wealth creation reaches smaller towns too. Many rural branches still lack basic infrastructure despite these record profits.
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Sanjay V.
LIC's performance is making me regret not buying their IPO! These numbers prove that with good governance, even our traditional PSUs can compete with private players. Hope they maintain this momentum and keep innovating 💪
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Kavita R.
The energy sector growth is impressive but I'm concerned about environmental costs. Coal India's profits are soaring but at what ecological price? We need to see equal investment in renewable PSUs to balance this growth with sustainability.

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