On Wednesday, Finance Ministry held a meeting with the heads of public sector banks to review their financial performance for the first quarter (April–June) of the financial year 2025-26. The meeting lasted for three hours and was led by Financial Services Secretary M Nagaraju.
Together, all 12 public sector banks made a record profit of ₹44,218 crore in the first quarter, which is 11% more than what they earned in the same period last year. In the same quarter last year (Q1 FY25), they made ₹39,974 crore profit, so profits increased by ₹4,244 crore this year.
Banks Performance in first quarter (April–June)
- State Bank Of India (SBI) made the biggest contribution by making ₹19,160 crore profit , which is 43% of the total profits of all 12 banks combined. SBI’s profit was 12% more than what it made in the same period last year.
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Indian Overseas Bank (IOB) made a big jump in profits this quarter. Its profit grew by 76% compared to the same time last year, reaching ₹1,111 crore. This was the highest profit growth among all public sector banks.
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Punjab & Sind Bank’s profit increased by 48% compared to the same period last year. The bank earned ₹269 crore in profit this quarter, showing strong growth.
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Central Bank of India saw its profit rise by 32.8% compared to the same time last year. The bank earned ₹1,169 crore in profit this quarter, showing steady growth.
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Indian Bank profit increased by 23.7% compared to the same quarter last year. It earned ₹2,973 crore in profit this quarter, reflecting solid financial performance.
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Bank of Maharashtra profit went up by 23.2% compared to the same time last year. The bank earned ₹1,593 crore profit this quarter, showing healthy growth.
- Punjab National Bank (PNB) reported a drop in profit this quarter. Its profit fell by 48% compared to the same period last year i.e. from ₹3,252 crore to ₹1,675 crore.
The ministry urged banks to lend more to productive sectors (like manufacturing, businesses, infrastructure, etc.), which helps boost the economy. Public sector banks are doing very well overall and the government wants them to keep growing and support the economy more through lending.