The Finance Ministry has called a meeting of the chiefs of public sector banks (PSBs) on Wednesday to review their financial performance for the first quarter
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NEW DELHI — The Finance Ministry has called a meeting of the chiefs of public sector banks (PSBs) on Wednesday to review their financial performance for the first quarter of the current financial year.
The meeting will be chaired by Financial Services Secretary M. Nagaraju, according to reports.
Public sector banks have posted strong earnings in the April–June quarter of 2025-26 (Q1 FY26).
Together, the 12 PSBs reported a record profit of INR 44,218 crore -- reflecting an 11 per cent growth over the same quarter previous year. In comparison, these banks had earned Rs 39,974 crore in the June quarter of 2024-25 -- marking an increase of INR 4,244 crore in absolute terms.
The State Bank of India (SBI) remained the biggest contributor, accounting for 43 per cent of the total profits.
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The country’s largest lender posted a net profit of INR 19,160 crore in the first quarter of FY26, which was 12 per cent higher than the same period the previous year.
The SBI continues to dominate the public banking sector in both size and earnings.
Among other banks, the Indian Overseas Bank recorded the highest growth in profit in percentage terms, with a 76 per cent jump to INR 1,111 crore.
The Punjab & Sind Bank followed with a 48 per cent rise in profit to INR 269 crore.
The Central Bank of India also reported a 32.8 per cent growth in net profit to INR 1,169 crore, while the Indian Bank posted a 23.7 per cent rise to INR 2,973 crore.
The Bank of Maharashtra registered a 23.2 per cent increase in profit to INR 1,593 crore.
However, the Punjab National Bank (PNB) was the only lender among the 12 PSBs to report a decline in profit. Its net profit dropped 48 per cent to INR 1,675 crore compared with INR 3,252 crore in the same quarter previous year.
The Finance Ministry’s review meeting is expected to take stock of these performances, discuss the health of the banking sector, and assess the outlook for the rest of the financial year.