Public Sector Banks Post Record ₹44,000+ Crore Q1 Profit, SBI Leads the Pack

New Delhi (The Uttam Hindu): Public Sector Banks (PSBs) have earned a record profit of Rs 44,218 crore in the first quarter of the financial year (April-June period). It has seen a growth of 11 percent on a yearly basis. In the same quarter of the previous financial year, 12 public sector banks had collectively made a profit of Rs 39,974 crore. State Bank of India (SBI) has contributed the highest amount of Rs 19,160 crore or 43 percent to the profit earned by public sector banks in the first quarter of the current financial year.

Apart from this, many small government banks have performed well. In the first quarter of FY 26, Indian Overseas Bank's profit has increased by 76 percent year-on-year, due to which the bank's profit has increased to Rs 1,111 crore in the April-June period. At the same time, the profit of Punjab and Sind Bank has increased by 48 percent year-on-year to Rs 269 crore.

Among other public sector banks, Bank of Maharashtra's profit rose 23.2 percent to Rs 1,593 crore, Indian Bank's profit rose 23.7 percent to Rs 2,973 crore and Central Bank of India's profit rose 32.8 percent to Rs 1,169 crore. Punjab National Bank (PNB) was the only public sector bank whose profit fell 48 percent year-on-year to Rs 1,675 crore in the first quarter from Rs 3,252 crore in the same period last year.

The increase in the profit of the public sector bank on an annual basis shows the strength of PSBs and their continuous progress towards growth. The reason for the sharp increase in the profit of banks is the positive growth of the economy. India's GDP growth rate is expected to be 6.5 percent in the financial year 2025-26. At the same time, inflation may remain at 3.1 percent.