NEW DELHI, Feb 9, 2026
India’s 12 public sector banks (PSBs) delivered strong performance in the third quarter of the current financial year (October-December 2025), posting a combined net profit of ₹52,603 crore, an 18% increase compared to the same period last year.
State Bank of India (SBI), the country’s largest lender, continued to dominate, contributing about 40% of the total with a standalone net profit of ₹21,028 crore — a 24% year-on-year rise.
Smaller and mid-sized PSBs showed the sharpest percentage gains. Indian Overseas Bank (IOB) recorded the highest growth at 56%, reaching ₹1,365 crore. Central Bank of India followed with 32% growth to ₹1,263 crore, while Bank of Maharashtra and Canara Bank posted increases of 27% and 26%, respectively.
Other banks achieving double-digit growth included Punjab & Sind Bank (19%), UCO Bank (16%), and Punjab National Bank (13%). Bank of Baroda, Union Bank of India, Indian Bank, and Bank of India registered single-digit profit growth.
For the first nine months of the financial year (April-December 2025), PSBs earned a cumulative ₹1,46,277 crore, up 13% from ₹1,29,994 crore in the corresponding period of the previous year — marking the first time nine-month profits crossed the ₹1.45 lakh crore milestone.
Financial Services Secretary M. Nagaraju expressed confidence that full-year PSB profits will exceed the ₹2 lakh crore mark, supported by 12% credit growth and 10% deposit growth. He noted the sector’s resilience to global factors due to prudent management and regulatory oversight by the Reserve Bank of India.
The accelerating profit trajectory — 11% in Q1, 9% in Q2, and 18% in Q3 — underscores the strengthening balance sheets and improved financial health of India’s public sector banking system.
