Public Sector Banks Achieve Record Profits: SBI Leads the Charge
Record Profits for Public Sector Banks
New Delhi: Public sector banks, led by the State Bank of India (SBI), have reported an impressive cumulative profit of ₹49,456 crore for the second quarter of the current fiscal year, marking a 9% increase compared to the previous year, despite two banks experiencing a downturn.
In total, the 12 public sector banks (PSBs) achieved a profit of ₹45,547 crore during the September quarter of FY25, reflecting an increase of ₹3,909 crore from the same quarter last year.
SBI, as the market leader, accounted for 40% of the total profit, which amounted to ₹49,456 crore, according to stock exchange disclosures.
The bank recorded a net profit of ₹20,160 crore in Q2 FY26, which is a 10% rise from the corresponding period last year.
Among the PSBs, Indian Overseas Bank from Chennai exhibited the highest growth in net profit at 58%, reaching ₹1,226 crore, followed closely by Central Bank of India with a 33% increase to ₹1,213 crore.
However, Bank of Baroda and Union Bank of India reported declines of 8% and 10% in profits, respectively, during this quarter.
Bank of Baroda's net profit fell to ₹4,809 crore from ₹5,238 crore a year earlier, while Union Bank of India saw its profits drop to ₹4,249 crore.
On a positive note, Bank of Maharashtra and Punjab & Sind Bank both reported a 23% increase in profits, while Canara Bank, Punjab National Bank, and Indian Bank saw growth rates of 19%, 14%, and 12%, respectively.
Bank of India and UCO Bank recorded modest single-digit profit growths of 8% and 3%, respectively.
It's noteworthy that PSBs had already achieved a profit increase of 11% year-on-year in the first quarter, totaling ₹44,218 crore compared to ₹39,974 crore in the June quarter of FY25.
For the first half of the fiscal year ending September 2025, the total profit of PSBs surpassed ₹90,000 crore for the first time, reaching ₹93,674 crore, up from ₹85,520 crore during the same period in FY25, indicating nearly 10% growth.