Public sector banks (PSBs) in India recorded their highest-ever combined quarterly profit of Rs 44,218 crore in Q1 FY26, reflecting a robust 11 per cent year-on-year growth.  

The State Bank of India (SBI) was the main driver of the impressive performance, accounting for nearly 43 per cent of the total earnings.

The 12 PSBs collectively reported a profit of Rs 39,974 crore in the same quarter of the previous fiscal year, representing an absolute increase of Rs 4,244 crore, according to filings made to the stock exchanges.

With a net profit of Rs 19,160 crore for the April–June quarter, which was 12 per cent higher than Q1 FY25, the SBI was at the top of the pack. In terms of size and profits, the biggest lender in the nation still controls the public banking market.

With a 76 per cent increase in net profit to Rs 1,111 crore, the Indian Overseas Bank was the best performer in terms of percentage growth. The Punjab & Sind Bank, which saw a 48 per cent increase in profit to Rs 269 crore, came next.

Other noteworthy winners were the Bank of Maharashtra, which reported a 23.2 per cent increase to Rs 1,593 crore, the Indian Bank, which saw a 23.7 per cent increase to Rs 2,973 crore, and the Central Bank of India, whose net profit jumped 32.8 per cent to Rs 1,169 crore.

However, the Punjab National Bank (PNB), the only PSB to record a decline, dampened the generally positive performance. In Q1 FY26, the PNB’s net profit dropped 48 per cent to Rs 1,675 crore from Rs 3,252 crore in the same period last year.

Even though individual sector-wide performance varied greatly, the first quarter results show the public sector lenders’ resilience and recovery momentum.