India’s public sector banks (PSBs) have posted a growth in profit of 9 per cent in the September quarter of FY26, with the State Bank of India (SBI) alone contributing 40 per cent to the total earnings of ₹49,456 crore, as per the published numbers on stock exchanges.
SBI logged a net profit of ₹20,160 crore in Q2 FY26, which is 10 per cent higher than the same period of the previous fiscal.
The year-on-year growth reflects strong performance by the 12 PSBs, despite two lenders – the Bank of Baroda and the Union Bank of India – reporting a decline in profit of 8 per cent and 10 per cent respectively.
The Bank of Baroda reported an 8 per cent fall in net profit at ₹4,809 crore as against ₹5,238 crore in the year-ago period, while another Mumbai-based lender, Union Bank of India, witnessed a 10 per cent decline in bottomline at ₹4,249 crore during the quarter.
In percentage terms, the Chennai-based Indian Overseas Bank reported the highest net profit growth of 58 per cent to ₹1,226 crore, followed by Central Bank of India with a 33 per cent rise to ₹1,213 crore.
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However, the aggregate profit of the PSBs dropped slightly from the first quarter earnings, when they recorded ₹44,218 crore. In the June quarter of FY25, the profit dropped to ₹39,974 crore.
Cumulatively, they recorded 45,547 crore profit in the September quarter of FY25. Thus, the increase in profit in absolute terms was ₹3,909 crore as compared to the same quarter of the previous financial year.
During the September quarter of this fiscal, Bank of Maharashtra and Punjab & Sind Bank reported a 23 per cent rise in profit, while Canara Bank, Punjab National Bank and Indian Bank posted 19 per cent, 14 per cent and 12 per cent, respectively.
Those which recorded single-digit growth in profit are Bank of India at 8 per cent, while UCO Bank at 3 per cent.
For the first half ended September 2025, the aggregate profit of PSBs crossed ₹90,000 crore for the first time. Together, the PSBs have earned ₹93,674 crore as compared to ₹85,520 crore in the April-September period of FY25, registering nearly 10 per cent growth.
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