State-run banks post record net profit in FY26

This report covers key India-focused updates related to loans, EMI, interest rates and banking. State-owned banks continue to post record profits. The aggregate net profit of these banks hit an all-time high of Rs 1.98 lakh crore in FY26, led by improved asset quality, strong credit growth and higher income. This is the fourth straight year of aggregate profitability for public sector banks (PSBs), the finance ministry said on Tuesday. Aggregate operating profit reached Rs 3.21 lakh crore, while aggregate net profit increased by 11.1% year-on-year to a historic high of Rs 1.98 lakh crore. The aggregate business of PSBs increased to Rs 283.3 lakh crore as on 31 March 2026, registering growth of 12.8% over the previous year.