Public sector banks raised Rs153.978 billion through equity and bonds over the last three financial years, according to a written reply in Parliament. The capital mobilisation included Rs44.942 billion in FY2022-23, Rs57.380 billion in FY2023-24, and Rs51.656 billion in FY2024-25.
The funds were raised to meet capital needs for credit growth, regulatory capital adequacy, compliance with minimum public shareholding norms, and to strengthen overall financial positions. Banks accessed the market through equity and Basel III-compliant Additional Tier-I and Tier-II bonds. The financial strength of public sector banks has reinforced investor confidence, facilitating capital raising from the market.
The Finance Ministry has convened a meeting with the heads of public sector banks this week to review their financial performance for the first quarter of FY2025-26. The agenda includes assessing the health of the banking sector and its outlook for the remainder of the fiscal year.
In Q1 FY26, the 12 public sector banks posted a combined profit of Rs44.218 billion, marking an 11 per cent increase over the Rs39.974 billion earned in the same quarter of FY2024-25. The State Bank of India contributed 43 per cent of the total profit, reporting Rs19.160 billion in net earnings for the quarter, a 12 per cent rise year-on-year.
