The Finance Ministry has convened a meeting with the heads of public sector banks on Wednesday to assess their financial performance for the first quarter of the 2025–26 fiscal year. The meeting will be chaired by Financial Services Secretary M. Nagaraju.
Public sector banks collectively posted a record net profit of Rs 44.2 billion in the April–June quarter, marking an 11 percent increase over the same period last year. In the first quarter of 2024–25, these banks had earned Rs 39.9 billion, reflecting an absolute growth of Rs 4.2 billion.
The State Bank of India emerged as the dominant contributor, accounting for 43 percent of the total profit pool. It reported a net profit of Rs 19.2 billion for Q1 FY26, a 12 percent rise compared to the same quarter the previous year. SBI continues to lead the public banking sector in both scale and profitability.
Indian Overseas Bank recorded the highest percentage growth among its peers, with profits surging 76 percent to Rs 1.1 billion. Punjab & Sind Bank followed with a 48 percent increase, reaching Rs 269 million. Central Bank of India posted a 32.8 percent rise in net profit to Rs 1.2 billion, while Indian Bank reported a 23.7 percent increase to Rs 3 billion. Bank of Maharashtra registered a 23.2 percent growth, earning Rs 1.6 billion.
Punjab National Bank was the only institution among the 12 public sector banks to report a decline in profit. Its net earnings fell 48 percent to Rs 1.7 billion, down from Rs 3.3 billion in the same quarter last year.
The upcoming review meeting is expected to evaluate these results, examine the overall health of the public banking sector, and discuss projections for the remainder of the financial year.
