PSB earnings review: FinMin holds Q1 meeting with bank chiefs; SBI leads sector with Rs 44,218 crore profit

The finance ministry on Wednesday held a meeting with the heads of public sector banks (PSBs) to review their financial performance in the first quarter of FY26. The three-hour session was chaired by Financial Services Secretary M Nagaraju.According to PTI report citing sources, the secretary urged the MDs and CEOs of state-owned banks to step up lending towards the productive sectors of the economy. The review covered the collective results of all 12 PSBs for April–June 2025.Led by State Bank of India (SBI), the state-owned lenders posted a record profit of Rs 44,218 crore in the first quarter, marking an 11 per cent year-on-year growth. In comparison, the PSBs had together earned Rs 39,974 crore in Q1 FY25, reflecting an increase of Rs 4,244 crore.SBI accounted for 43 per cent of the total earnings, reporting a net profit of Rs 19,160 crore, up 12 per cent over the same quarter last fiscal. The country’s largest lender continues to dominate the sector in both size and profitability.Among smaller lenders, Indian Overseas Bank reported the highest growth in percentage terms with a 76 per cent jump in net profit to Rs 1,111 crore. Punjab & Sind Bank followed with a 48 per cent rise to Rs 269 crore.

Notably, Punjab National Bank was the only state-run lender to post a decline in profit, with net earnings falling 48 per cent to Rs 1,675 crore against Rs 3,252 crore a year earlier.Other major performers included Central Bank of India, which posted a 32.8 per cent rise in quarterly profit to Rs 1,169 crore, Indian Bank with a 23.7 per cent increase to Rs 2,973 crore, and Bank of Maharashtra with a 23.2 per cent improvement to Rs 1,593 crore.