The Finance Ministry has convened a meeting of public sector bank (PSB) chiefs on Wednesday, August 20, 2025, to review their first-quarter financial performance. The meeting will be chaired by Financial Services Secretary M. Nagaraju, sources said.
Public sector banks collectively reported a record profit of ₹44,218 crore in Q1 FY26, marking an 11% year-on-year growth compared to ₹39,974 crore in the same quarter last year.
The State Bank of India (SBI) led the performance, contributing 43% of total PSB earnings, with a net profit of ₹19,160 crore, up 12% YoY. Despite SBI’s dominance, several mid-sized lenders recorded strong growth.
- Indian Overseas Bank reported the highest profit growth at 76% YoY to ₹1,111 crore.
- Punjab & Sind Bank followed with a 48% rise to ₹269 crore.
- Central Bank of India posted 32.8% growth to ₹1,169 crore.
- Indian Bank reported a 23.7% increase to ₹2,973 crore.
- Bank of Maharashtra registered 23.2% growth to ₹1,593 crore.
However, Punjab National Bank (PNB) was the only major laggard, reporting a 48% decline in net profit to ₹1,675 crore against ₹3,252 crore a year earlier.
The upcoming review meeting will assess these results and discuss strategies for sustaining growth momentum in the banking sector.
