Public Sector Banks' gross NPAs at historic low of 1.9%; record net profit of Rs 1.98 lakh crore in FY 2025-26
The Finance Ministry said on 28 July 2026 that Public Sector Banks' gross NPAs fell to a historic low of 1.9% at end-March 2026, with a highest-ever net profit of Rs 1.98 lakh crore and total business of Rs 283.3 lakh crore.
Summary
Citing RBI data, the Ministry of Finance said Public Sector Banks (PSBs) brought gross non-performing assets down to 1.9% as on 31 March 2026 (from 7.3% in March 2022) and earned a highest-ever net profit of Rs 1.98 lakh crore in FY 2025-26. Total business reached Rs 283.3 lakh crore, deposits Rs 156.3 lakh crore and loans Rs 127.0 lakh crore, with capital adequacy (CRAR) at 16.6%. Credit growth in FY 2025-26 was 19.8% for retail, 19.6% for MSME and 16.2% for agriculture loans. The government introduced ECLGS 5.0 in May 2026 for short-term liquidity mismatches.
Key facts
- Gross NPA (31 Mar 2026)
- 1.9% (31 Mar 2022: 7.3%)
- Net profit FY26
- Rs 1.98 lakh crore (highest ever)
- Total business
- Rs 283.3 lakh crore
- CRAR
- 16.6%
- Credit growth FY26
- Retail 19.8%, MSME 19.6%, Agriculture 16.2%
- Data source
- RBI
Practice MCQs 3 questions
What was the gross NPA ratio of Public Sector Banks as on 31 March 2026?
Show answer
Correct answer: A — 1.9%
PSBs' GNPA fell to a historic low of 1.9% at end-March 2026; it was 2.6% in March 2025 and 3.5% in March 2024.
What was the aggregate net profit of Public Sector Banks in FY 2025-26?
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Correct answer: D — Rs 1.98 lakh crore
PSBs posted a highest-ever net profit of Rs 1.98 lakh crore in FY 2025-26, up from Rs 1.78 lakh crore in FY 2024-25.
Consider the following statements about Public Sector Banks in FY 2025-26: 1. Their capital adequacy ratio (CRAR) was 16.6% at end-March 2026. 2. MSME loans grew faster than agriculture loans. 3. Infrastructure loans recorded the fastest credit growth among sectors. Which of the statements given above are correct?
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Correct answer: A — 1 and 2 only
CRAR was 16.6%. MSME loans grew 19.6% against 16.2% for agriculture. Infrastructure loans grew only 4.9%, the slowest; retail (19.8%) was fastest.