PSU Banks Clock ₹49,456 Cr Profit in Q2 FY26

India’s public sector banks (PSBs) delivered a strong financial performance in the second quarter (Q2) of FY26, posting a record cumulative net profit of ₹49,456 crore, reflecting a 9% year-on-year (YoY) growth. The performance comes despite two key banks — Bank of Baroda and Union Bank of India — reporting a dip in their profits during the period.

Quarter-Wise Performance Overview

In Q2 FY26, the combined profit of all 12 PSBs rose from ₹45,547 crore in Q2 FY25 to ₹49,456 crore — an absolute increase of ₹3,909 crore.

Top contributor,

• State Bank of India (SBI) led the profit chart, contributing 40% of the total earnings, with a standalone net profit of ₹20,160 crore, which is 10% higher YoY.

Key Highlights: Bank-wise Performance

• Indian Overseas Bank (IOB): Reported the highest net profit growth of 58%, reaching ₹1,226 crore.
• Central Bank of India: Registered a 33% growth to ₹1,213 crore.
• Bank of Maharashtra & Punjab & Sind Bank: Both posted a 23% rise in profits during the quarter.
• Canara Bank: Reported 19% growth in profit.
• Punjab National Bank (PNB): Logged a 14% rise in net earnings.
• Indian Bank: Recorded 12% growth.
• Bank of India: Profit growth stood at 8%.
• UCO Bank: Notched a modest 3% rise.

Underperformers in Q2 FY26

• Bank of Baroda: Reported an 8% fall in net profit, down to ₹4,809 crore from ₹5,238 crore YoY.
• Union Bank of India: Witnessed a 10% drop in profit, posting ₹4,249 crore for the quarter.

Half-Year Snapshot: April–September FY26

Public sector banks have had a robust first half of FY26,

• H1 FY26 Aggregate Profit: ₹93,674 crore
• H1 FY25 Profit: ₹85,520 crore
• YoY Growth: Nearly 10%
• Q1 FY26 Profit: ₹44,218 crore (up 11% YoY from ₹39,974 crore)

This marks the first time PSBs have crossed ₹90,000 crore in cumulative profits in the first half of a fiscal year — an important economic indicator and a reflection of improved asset quality and operational efficiency.