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.
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).
Reform strategy: 4Rs
| 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 |
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