SBI, PNB and Other PSBs Post ₹44,218 Crore Profit in Q1 FY26, Up 11% YoY

India’s public sector banks (PSBs) delivered a record combined net profit of ₹44,218 crore in the first quarter of FY26, an 11% year-on-year increase from ₹39,974 crore in the same quarter last year. The growth was driven largely by the State Bank of India (SBI), which contributed nearly half of the sector’s total earnings.

SBI Leads the Sector

• SBI Q1 FY26 Profit: ₹19,160 crore (up 12% YoY)
• Contribution: 43% of total PSB earnings
• SBI’s consistent profitability underscores its dominant position in the sector.

Top Gainers in Profit Growth

Some smaller PSBs outperformed in percentage growth terms,

• Indian Overseas Bank (IOB): ₹1,111 crore (up 76% YoY) – highest growth among peers.
• Punjab & Sind Bank: ₹269 crore (up 48% YoY).
• Central Bank of India: ₹1,169 crore (up 32.8% YoY).
• Indian Bank: ₹2,973 crore (up 23.7% YoY).
• Bank of Maharashtra: ₹1,593 crore (up 23.2% YoY).

Decliners

Not all PSBs enjoyed profit growth,

• Punjab National Bank (PNB): ₹1,675 crore, down 48% YoY from ₹3,252 crore.
• The sharp fall contrasts with the overall sector trend and may reflect rising provisioning or weaker interest income.

Sector-Wide Insights

The double-digit profit growth across most PSBs reflects improved asset quality, higher net interest income, and controlled operating costs.

Smaller banks like IOB and Punjab & Sind Bank are showing rapid growth from a low base, while large banks like SBI continue to anchor sector stability.