The Ministry of Finance will meet the chiefs of India’s public sector banks on August 20 to review their Q1 FY26 results. The sector posted a combined profit of ₹44,218 crore, led by State Bank of India, marking an 11% year-on-year growth.
The Ministry of Finance, headquartered in New Delhi, oversees India’s fiscal policy, banking sector, and public finance management. As part of its supervisory role, the ministry regularly reviews the financial health of public sector banks (PSBs) to ensure stability and growth in the country’s banking ecosystem.
On August 20, Financial Services Secretary M. Nagaraju will chair a performance review meeting with the chief executives of all 12 PSBs. The agenda includes an assessment of their first-quarter earnings for FY2025–26 and discussions on growth, profitability, and challenges in the sector.
India’s state-owned banks reported a combined net profit of ₹44,218 crore in Q1 FY26, an increase of 11% compared to the ₹39,974 crore earned in the same period last year. The rise in earnings highlights continued strength in credit growth and improved balance sheets across the sector.
State Bank of India (SBI), the country’s largest lender, accounted for nearly 43% of the sector’s profits. The bank reported a standalone net profit of ₹19,160 crore, up 12% year-on-year, reinforcing its dominant position in India’s financial services landscape.
Among smaller lenders, Indian Overseas Bank (IOB) posted the highest growth in percentage terms, recording a 76% surge in net profit to ₹1,111 crore. Punjab & Sind Bank followed with a 48% jump to ₹269 crore, while Central Bank of India reported a 32.8% increase, reaching ₹1,169 crore. Indian Bank and Bank of Maharashtra also delivered strong gains with 23.7% and 23.2% profit growth, respectively.
However, not all PSBs registered an upward trajectory. Punjab National Bank (PNB) reported a sharp 48% decline in net profit to ₹1,675 crore, compared with ₹3,252 crore in the previous year’s June quarter. Despite this, the overall sector remained buoyant with most lenders showing steady performance improvements.
The review meeting is expected to focus on sustaining profitability, strengthening capital adequacy, and aligning banking operations with the government’s financial inclusion and credit expansion goals.
With the sector surpassing a cumulative ₹44,000 crore profit milestone, the performance of PSBs reflects both structural reforms and improving asset quality, positioning them strongly for the remainder of FY26.
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