Public sector banks post record ₹1.98 lakh crore net profit in FY 2025-26; gross NPA falls to 1.93%
On 12 May 2026 the Finance Ministry said public sector banks earned a record aggregate net profit of ₹1.98 lakh crore in FY 2025-26, their fourth straight profitable year, with gross NPA at a record-low 1.93%.
Summary
Public sector banks (PSBs) recorded an all-time high aggregate net profit of ₹1.98 lakh crore in FY 2025-26, up 11.1% and their fourth consecutive year of profit, the Finance Ministry said on 12 May 2026. Gross NPA fell to 1.93% and net NPA to 0.39% as of 31 March 2026, the lowest on record, and every PSB kept a provisioning coverage ratio above 90%. Total business grew 12.8% to ₹283.3 lakh crore, with deposits of ₹156.3 lakh crore and gross advances of ₹127 lakh crore (up 15.7%). Aggregate CRAR improved to 16.6%, well above the regulatory requirement of 11.5%, after PSBs raised ₹50,551 crore of capital during the year.
Key facts
- Net profit FY26
- ₹1.98 lakh crore (+11.1%); 4th straight year of profit
- Asset quality
- Gross NPA 1.93%; net NPA 0.39% (31 Mar 2026)
- Business
- ₹283.3 lakh crore (+12.8%); advances ₹127 lakh crore (+15.7%)
- Capital
- CRAR 16.6% vs 11.5% requirement; ₹50,551 crore raised
- Other
- Operating profit ₹3.21 lakh crore; recoveries ₹86,971 crore
Practice MCQs 3 questions
What was the aggregate net profit of public sector banks in FY 2025-26, as announced in May 2026?
Show answer
Correct answer: A — ₹1.98 lakh crore
Aggregate net profit rose 11.1% to a record ₹1.98 lakh crore; ₹3.21 lakh crore was the operating profit and ₹86,971 crore the recoveries.
Consider the following statements about public sector banks as of 31 March 2026: 1. Their gross NPA ratio was 1.93% and net NPA ratio 0.39%. 2. Their aggregate CRAR of 16.6% was above the regulatory requirement of 11.5%. Which of the statements given above is/are correct?
Show answer
Correct answer: C — Both 1 and 2
Both are correct, as per the Finance Ministry's FY 2025-26 PSB performance release.
FY 2025-26 marked which consecutive year of aggregate profitability for public sector banks?
Show answer
Correct answer: D — Fourth
The record ₹1.98 lakh crore profit marked the fourth consecutive year of aggregate profitability for PSBs.