Public Sector Banks Clock Record ₹1.78 Lakh Crore Profit in FY25

Public Sector Banks (PSBs) in India have posted a record-breaking cumulative profit of ₹1.78 lakh crore in the financial year 2024–25 (FY25), marking a substantial 26% increase over the previous year. Spearheaded by the State Bank of India (SBI), which alone contributed over 40% of the total earnings, all 12 PSBs reported positive growth—a remarkable turnaround from the significant losses suffered just a few years ago.

Why in News?

This development has drawn attention as a major milestone in India’s banking sector, reflecting the success of long-term structural reforms and recapitalization efforts initiated by the government. It highlights the strengthening of public sector banks and their renewed profitability following years of stress due to Non-Performing Assets (NPAs).

Key Highlights

• Total cumulative PSB profit (FY25): ₹1.78 lakh crore
• Growth over FY24: 26% increase
• SBI’s contribution: ₹70,901 crore (over 40% of total PSB profits)
• Highest % increase: Punjab National Bank (102%)
• Turnaround from FY18 loss: ₹85,390 crore loss in FY18 to ₹1.78 lakh crore profit in FY25

Significant Bank-Wise Profit Growth

• Punjab National Bank: ₹16,630 crore (↑102%)
• Punjab & Sind Bank: ₹1,016 crore (↑71%)
• Central Bank of India: ₹3,785 crore (↑48.4%)
• UCO Bank: ₹2,445 crore (↑47.8%)
• Bank of India: ₹9,219 crore (↑45.9%)
• Bank of Maharashtra: ₹5,520 crore (↑36.1%)
• Indian Bank: ₹10,918 crore (↑35.4%)

Background & Government Interventions

Reform strategy: 4Rs

• Recognising NPAs
• Resolution and recovery
• Recapitalisation of PSBs
• Reforms in governance and financial ecosystem
• Recapitalisation amount: ₹3.11 lakh crore (FY17 to FY21)
• Prime contributors: PM Narendra Modi, Former FM Arun Jaitley, FM Nirmala Sitharaman, and financial services secretaries including Rajiv Kumar
• Other reforms: Bank amalgamation, adoption of digital banking, improved lending discipline, and enhanced governance

Summary/Static	Details
Why in the news?	Public Sector Banks Clock Record ₹1.78 Lakh Crore Profit in FY25
Total PSB profit (FY25)	₹1.78 lakh crore
Growth from FY24	26% increase
SBI’s Net Profit	₹70,901 crore (↑16%)
Highest % Profit Growth (Bank)	Punjab National Bank (↑102%)`
Number of PSBs Reporting Profit	12
Loss in FY18	₹85,390 crore
Government Strategy	4Rs: Recognition, Resolution, Recapitalisation, Reforms
Total Recapitalisation (2017–21)	₹3.11 lakh crore