Public sector banks'(PSBs) cumulative profit rose to a record level of Rs. 1.78 lakh crore in the Financial Year 2024-25(FY25), registering a growth of 26% over the previous year. All 12 PSBs had earned a total profit of Rs 1.41 lakh crore in FY24.
- The year-on-year(YoY) increase in profit in absolute terms rose by about Rs. 37,100 crore in FY25.
Key Highlights:
i.Of the total Rs.1,78,364 crore profit earned in FY25, market leader Mumbai(Maharashtra) based State Bank of India (SBI) alone accounted for over 40% with a net profit of Rs 70,901 crore, marking a 16% increase from Rs 61,077 crore recorded in FY24.
ii.New Delhi(Delhi) based Punjab National Bank (PNB) registered the highest percentage growth among all PSBs, with a 102% rise in net profit to Rs 16,630 crore.
iii. It was followed by New Delhi based Punjab & Sind Bank (P&SB), which recorded a 71% increase to Rs. 1,016 crore.
iv.The following are the PSBs which recorded over 40% annual jump in their net profit:
- Mumbai based Central Bank of India(CBI)Â with a 48.4% growth to Rs. 3,785 crore
- Kolkata, West Bengal(WB) based UCO Bank posted a 47.8% rise to Rs. 2,445 crore
- Mumbai based Bank of India(BoI) registered a 45.9% rise to Rs. 9,219 crore
v.The profits posted by other PSBs are:
- Pune(Maharashtra)-based Bank of Maharashtra (BoM) posted a 36.1% improvement in its net profit to Rs. 5,520 crore.
- Chennai(Tamil Nadu, Tn)-based Indian Bank with a 35.4 % rise to Rs. 10,918 crore in FY25.
Loss to Profit making:
i.From posting record losses of Rs. 85,390 crore in FY18 to achieving record profits in FY25, PSBs have made a strong recovery.
ii.The government has implemented a comprehensive 4R strategy:
- Recognising Non-Performing Assets(NPAs) transparently,
- Resolution and recovery,
- Recapitalising PSBs, and
- Reforms in the financial ecosystem.
iii.As part of the above strategy, the government infused Rs. 3,10,997 crore to recapitalise PSBs during the last five financial years, that is from FY17 to FY21.
iv.The recapitalisation programme provided the much needed support to the PSBs and prevented the possibility of any default on their part.
v.The reforms undertaken by the government over the last eleven years addressed credit discipline, ensured responsible lending and improved governance.
Recent Related News:
In April 2025, the Department of Financial Services (DFS), Ministry of Finance (MoF) announced ‘One StateOne RRB’ through official notification for amalgamation of 26 Regional Rural Banks (RRBs) across 11 States which include 10 states and 1 Union Territory (UT), effective from May 01, 2025.
- Among states that will see consolidation of RRBs include Andhra Pradesh(AP), which has the maximum number of RRBs (4), Uttar Pradesh(UP) and West Bengal(WB) (3 each), and Bihar, Gujarat, Jammu & Kashmir(J&K), Karnataka, Madhya Pradesh(MP), Maharashtra, Odisha and Rajasthan (2 each).
