The country’s public sector banks (PSBs) have performed brilliantly in the third quarter (October-December) of the current financial year and have created new records of profits. The combined profit of all 12 public sector banks, led by State Bank of India (SBI), has increased by 18% year-on-year to Rs 52,603 crore. This figure reflects the strength of the Indian banking sector and the impact of financial reforms.
SBI’s unilateral dominance
According to the data released on the stock exchanges, SBI alone accounted for 40% of the total profit of Rs 52,603 crore. The country’s largest lender SBI posted a net profit of Rs 21,028 crore in the quarter, 24% higher than the same period last fiscal.
Which bank grew how much?
In terms of percentage increase in profits, small and medium government banks have won.
- Indian Overseas Bank (IOB): Highest profit of Rs 1,365 crore with an increase of 56%.
- Central Bank of India: Profit of Rs 1263 crore with an increase of 32%.
- Bank of Maharashtra: 27% increase in profits.
- Canara Bank: An increase of 26%.
Apart from this, Punjab & Sind Bank has registered double digit growth of 19%, UCO Bank of 16% and Punjab National Bank (PNB) of 13%. However, the profit pace of Bank of Baroda, Union Bank of India, Indian Bank and Bank of India remained slow and recorded single digit growth.
Earning of Rs 1.46 lakh crore in nine months
The performance of public sector banks in the first 9 months of the current financial year (April-December 2025) has been historic. During this period, the total profit of banks crossed the figure of Rs 1.45 lakh crore for the first time. Overall, PSBs have earned Rs 1,46,277 crore, which is about 13% more than the same period last year (Rs 1,29,994 crore).
Will profit cross Rs 2 lakh crore?
Financial Services Secretary M Nagaraju has expressed confidence in an interview that the total profit of public sector banks will cross the historical level of Rs 2 lakh crore in the current financial year. “The Indian banking sector is in good shape. Credit growth this year is 12% which is very good, and deposit growth is also satisfactory at 10% level,” he said. Nagaraju also clarified that due to the strict and prudent management of RBI, external global factors will not have much negative impact on the Indian banking sector.
If we look at the data of the previous quarters, after a growth of 11% in the first quarter and 9% in the second quarter, the jump of 18% in the third quarter shows that the balance sheets of public sector banks are now stronger and more flexible than ever.
