Public Sector Banks Post Record INR 1.78 Lakh Crore Profit in FY25 State Bank of India (SBI) continued to dominate the sector, contributing more than 40 per cent of the total earnings. The country's largest bank recorded a net profit of INR 70,901 crore in FY25, up 16 per cent from INR 61,077 crore in the previous fiscal
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Public sector banks (PSBs) have reported a cumulative net profit of INR 1.78 lakh crore in the financial year ending March 2025, marking a 26 per cent jump over the previous year, according to data published on stock exchanges. The milestone highlights the turnaround from the sector's past struggles, attributed largely to sweeping reforms and targeted support from the central government.
In FY24, the 12 state-run banks collectively posted a net profit of INR 1.41 lakh crore. As per a report by PTI, the increase of over INR 37,000 crore this year underlines consistent improvement across all lenders. State Bank of India (SBI) continued to dominate the sector, contributing more than 40 per cent of the total earnings. The country's largest bank recorded a net profit of INR 70,901 crore in FY25, up 16 per cent from INR 61,077 crore in the previous fiscal.
The strongest percentage growth, however, came from Punjab National Bank, which more than doubled its profit with a 102 per cent surge to INR 16,630 crore. Punjab & Sind Bank followed with a 71 per cent jump to INR 1,016 crore. Other notable performers included Central Bank of India, which saw a 48.4 per cent rise in profit to INR 3,785 crore, and UCO Bank, with a 47.8 per cent increase to INR 2,445 crore. Bank of India also posted a robust 45.9 per cent growth, reporting INR 9,219 crore in net earnings.
Pune-headquartered Bank of Maharashtra improved its net profit by 36.1 per cent to INR 5,520 crore, while Indian Bank, based in Chennai, posted a 35.4 per cent increase to INR 10,918 crore.
This collective surge represents a dramatic reversal from FY18, when PSBs were reeling under record losses of INR 85,390 crore. The turnaround has been credited to the Narendra Modi-led government's multi-pronged reform programme that began in earnest under the leadership of former Finance Minister Arun Jaitley and was carried forward by his successor Nirmala Sitharaman, along with then Financial Services Secretary Rajiv Kumar.
Central to this recovery has been the implementation of the 4R strategy — recognition of non-performing assets (NPAs), resolution and recovery, recapitalisation, and reforms. Between 2016-17 and 2020-21, the government infused INR 3.11 lakh crore into PSBs to strengthen their balance sheets and restore credit confidence.
