Public sector banks posted a record combined profit of Rs 1.78 lakh crore for the fiscal ended March 2025, up 26% from Rs 1.41 lakh crore in the year-ago period.

For the 12 public sector banks, the year-on-year increase in profit in absolute terms rose by about Rs 37,100 crore in FY25.

Market leader State Bank of India (SBI) alone accounted for over 40% of the total earnings of the state-owned banks in FY25.

SBI clocked a net profit of Rs 70,901 crore in FY25, 16% higher than the year-ago fiscal figure of Rs 61,077 crore.

As per percentage increase, Delhi-based Punjab National Bank reported the highest net profit growth of 102% to Rs 16,630 crore. Punjab & Sind Bank came second, with a 71% year-on-year rise to Rs 1,016 crore in FY25.

During the year, all 12 public sector banks (PSBs) reported a rise in profit.

Among the banks, which recorded over 40% annual jump in their net profit are Central Bank of India with a 48.4% growth to Rs 3,785 crore; UCO Bank, with a 47.8% rise to Rs 2,445 crore; and Bank of India, with a 45.9% increase to Rs 9,219 crore.

Pune-based Bank of Maharashtra’s net profit jumped 36.1% to Rs 5,520 crore, followed by Chennai-based Indian Bank with a 35.4% rise to Rs 10,918 crore in FY25.

PSBs have turned around from record losses of Rs 85,390 in FY18 to record profit in FY25.

The government has implemented a comprehensive 4R strategy: Recognising NPAs transparently; Resolution and recovery; Recapitalising PSBs; and Reforms in the financial ecosystem.

As part of the strategy, the government infused an unprecedented Rs 3,10,997 crore to recapitalise PSBs during the last five financial years -- from 2016-17 to 2020-21. The recapitalisation programme provided much-needed support to the PSBs and prevented the possibility of any default on their part.