Public Sector Banks Achieve Record Profitability with Improved Asset Quality
Public Sector Banks in India have recorded a historic net profit of ₹1.98 lakh crore in FY 2025-26, marking their fourth consecutive year of profitability. The robust financial performance is attributed to improved asset quality, operational efficiency, and strong capital adequacy. The Gross Non-Performing Assets ratio fell to an all-time low of 1.93%, while credit growth across Retail, Agriculture, and MSME segments remained strong. Continued reforms and enhanced governance practices have strengthened the financial resilience of PSBs, enabling them to support the credit needs of India's fast-growing economy.
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