PSU Banks Record 9 % Growth in Profit to Record ₹ 49,456 Cr Profit in Q2

State Bank of India-led public sector banks posted a record cumulative profit of ₹ 49,456 crore in the second quarter of the current fiscal, reflecting a 9 % year-on-year growth despite two lenders reporting a decline.

All 12 public sector banks (PSBs) together made a profit of ₹ 45,547 crore 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.

Market leader SBI alone contributed 40 % 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, 10 % higher than the same period of the previous fiscal.

In percentage terms, Chennai-based Indian Overseas Bank reported the highest net profit growth of 58 % to ₹ 1,226 crore, followed by Central Bank of India with a 33 % rise to ₹ 1,213 crore.

During the quarter, all 12 public sector banks (PSBs) except Bank of Baroda and Union Bank of India reported an 8 % and 10 % decline, respectively, in profit.

Bank of Baroda reported an 8 % fall in net profit at ₹ 4,809 crore as against ₹ 5,238 crore in the year-ago period. Another Mumbai-based lender, Union Bank of India, witnessed a 10 % decline in bottomline at ₹ 4,249 crore during the quarter.

During the quarter, Bank of Maharashtra and Punjab & Sind Bank reported a 23 % rise in profit, while Canara Bank, Punjab National Bank and Indian Bank posted 19 %, 14 % and 12 %, respectively.

Those which recorded single-digit growth in profit are Bank of India at 8 %, while UCO Bank at 3 %.

It is to be noted that the PSBs recorded a slightly higher profit of 11 % on an annual basis to ₹ 44,218 crore in the first quarter as compared to ₹ 39,974 crore in the June quarter of FY25.

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 % growth.