Public Sector Banks: From Red to Record Profits

Public sector banks in India achieved a record cumulative profit of Rs 1.78 lakh crore in FY25, driven by initiatives and reforms by the government. The growth of 26% from the previous fiscal year's profits underscores the successful implementation of the 4R strategy and recapitalisation efforts.

Public sector banks in India have marked a significant milestone, recording a cumulative profit of Rs 1.78 lakh crore for the fiscal year ending March 2025. This landmark achievement represents a 26% increase compared to the Rs 1.41 lakh crore garnered in FY24.

According to data released, the State Bank of India (SBI) led the charge, contributing over 40% of total earnings with a net profit of Rs 70,901 crore. Compared to its previous fiscal year's earnings, this reflects a 16% growth.

This resurgence can be largely attributed to the comprehensive reforms initiated by the government. These include the '4R' strategy, encompassing Recognising NPAs, Resolution and recovery, Recapitalising PSBs, and Reforms in the financial ecosystem, alongside an infusion of Rs 3.10 lakh crore for recapitalisation.

(With inputs from agencies.)