In the fiscal year ending March 2025, public sector banks’ cumulative profit rose to a record level of Rs 1.78 lakh crore, registering a growth of 26% over the previous year.

The year-on-year increase in profit in absolute terms rose by about Rs 37,100 crore in FY25.

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Further, all 12 public sector banks had earned a total profit of Rs 1.41 lakh crore in FY24.

Notably, PSB is a turnaround story from record losses of Rs 85,390 in FY18 to record profit in FY25.

Out of the total profit of Rs 1,78,364 crore earned during the FY25, market leader State Bank of India (SBI) alone contributed over 40% of the total earnings, as per the published numbers on stock exchanges.

SBI logged a net profit of Rs 70,901 crore in FY25, 16% higher than the previous fiscal (Rs 61,077 crore).

Punjab National Bank reported the highest net profit growth of 102% to Rs 16,630 crore, followed by Punjab & Sind Bank with a 71% rise to Rs 1,016 crore.

Central Bank India registered a net profit with a 48.4% growth to Rs 3,785 crore, while UCO Bank posted a 47.8% rise to Rs 2,445 crore. Bank of India registered a 45.9% rise to Rs 9,219 crore.

Bank of Maharashtra posted a 36.1% improvement in its net profit to Rs 5,520 crore, followed by Chennai-based Indian Bank with a 35.4% rise to Rs 10,918 crore.

The Union Government implemented a comprehensive 4R strategy: Recognising NPAs transparently, Resolution and recovery, Recapitalising PSBs, and Reforms in the financial ecosystem.

As part of the strategy, the government infused an unprecedented Rs 3,10,997 crore to recapitalise PSBs during the last five financial years — from 2016-17 to 2020-21. The recapitalisation programme provided much-needed support to the PSBs and prevented the possibility of any default on their part.