INDUSTRY
PSBs’ combined profit set to cross Rs 2 lakh crore in FY26 amid good performance
- IBJ Bureau
- Feb 09, 2026
Buoyed by good health of public sector banks (PSBs), Financial Services Secretary M Nagaraju has exuded confidence that the combined profit of these banks should cross Rs 2 lakh crore in the current financial year.
Stressing that the Indian banking sector is in good shape, Mr Nagaraju has said that credit growth of PSBs is at 12 per cent this year, which is tremendously “good”, while deposit growth at 10 per cent is also reasonably very good.
“As I said, banks are at the bellwether for the strength of the economy. Therefore, they are resilient. We have very prudent management systems in place under the regulator, RBI. So, we are not much worried about the external factors negatively impacting our banking sector,” he has told the PTI in an interview.
“This year (on-going financial year of FY26), we will cross Rs 2 lakh crore. We already touched almost Rs 1 lakh crore in the first half...I think, we will cross Rs 2 lakh crore,” he has added.
The combined profit of PSBs would double in three years. PSBs’ profit crossed Rs 1 lakh crore to Rs 1.05 lakh crore in FY23, touched another high of Rs 1.41 lakh crore in 2023-24 and subsequently reached Rs 1.78 lakh crore in FY25 on account of significant improvement in asset quality, credit growth, healthy capital adequacy ratio and rising return on assets, Mr Nagaraju has noted.
PSBs’ gross NPA was at a record low of 2.30 per cent and net NPA at 3 per cent at the end of September 2025. Provisioning Coverage Ratio improved to 94.63 per cent at the end of September 2025, while the Capital Adequacy Ratio of PSBs stood at 15.96 per cent at the end of the first half of the current financial year.
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