{"id":50993,"date":"2026-05-14T14:15:29","date_gmt":"2026-05-14T08:45:29","guid":{"rendered":"https:\/\/edunovations.com\/currentaffairs\/?p=50993"},"modified":"2026-05-14T14:15:34","modified_gmt":"2026-05-14T08:45:34","slug":"india-psbs-record-profit","status":"publish","type":"post","link":"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/","title":{"rendered":"India PSBs Record Profit 2026: Public Sector Banks Achieve Historic \u20b91.98 Lakh Crore Profit"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#India_PSBs_record_profit_for_the_fourth_consecutive_year_as_Public_Sector_Banks_achieve_%E2%82%B9198_lakh_crore_profit_with_lowest_NPA_levels_banking_reforms_RBI_policies_and_economic_growth_insights_for_UPSC_SSC_Banking_Railway_and_PSC_exams\" >India PSBs record profit for the fourth consecutive year as Public Sector Banks achieve \u20b91.98 lakh crore profit with lowest NPA levels, banking reforms, RBI policies, and economic growth insights for UPSC, SSC, Banking, Railway, and PSC exams.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Indias_Public_Sector_Banks_Achieve_Record_Profit_for_Fourth_Consecutive_Year\" >India\u2019s Public Sector Banks Achieve Record Profit for Fourth Consecutive Year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Strong_Financial_Performance_of_PSBs\" >Strong Financial Performance of PSBs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Growth_in_Banking_Business_and_Credit_Expansion\" >Growth in Banking Business and Credit Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Improvement_in_Asset_Quality\" >Improvement in Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Government_Reforms_Behind_the_Turnaround\" >Government Reforms Behind the Turnaround<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Role_of_Technology_and_Digital_Banking\" >Role of Technology and Digital Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Capital_Position_and_Financial_Stability\" >Capital Position and Financial Stability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Support_for_Key_Economic_Sectors\" >Support for Key Economic Sectors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Significance_for_Indias_Economy\" >Significance for India\u2019s Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Why_This_News_is_Important\" >Why This News is Important<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Important_for_Banking_and_Economy_Questions\" >Important for Banking and Economy Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Indicator_of_Economic_Stability\" >Indicator of Economic Stability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Success_of_Government_Reforms\" >Success of Government Reforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Relevance_for_Financial_Inclusion\" >Relevance for Financial Inclusion<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Historical_Context\" >Historical Context<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Banking_Crisis_and_Rising_NPAs\" >Banking Crisis and Rising NPAs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Governments_Banking_Reforms\" >Government\u2019s Banking Reforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Shift_Towards_Digital_Banking\" >Shift Towards Digital Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Return_to_Profitability\" >Return to Profitability<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Key_Takeaways_from_This_News\" >Key Takeaways from This News<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#FAQs_Related_to_Indias_PSBs_Record_Profit\" >FAQs Related to India\u2019s PSBs Record Profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#1_What_are_Public_Sector_Banks_PSBs\" >1. What are Public Sector Banks (PSBs)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#2_What_was_the_record_profit_earned_by_PSBs_in_FY2025%E2%80%9326\" >2. What was the record profit earned by PSBs in FY2025\u201326?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#3_What_does_NPA_mean_in_banking\" >3. What does NPA mean in banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#4_Why_did_PSBs_become_profitable_again\" >4. Why did PSBs become profitable again?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#5_What_is_the_Insolvency_and_Bankruptcy_Code_IBC\" >5. What is the Insolvency and Bankruptcy Code (IBC)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#6_What_is_the_role_of_RBI_in_the_banking_sector\" >6. What is the role of RBI in the banking sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#7_Which_sectors_received_major_loans_from_PSBs\" >7. Which sectors received major loans from PSBs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#8_Why_is_this_topic_important_for_competitive_exams\" >8. Why is this topic important for competitive exams?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#9_What_is_CRAR_in_banking\" >9. What is CRAR in banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#10_Which_government_reforms_improved_PSB_performance\" >10. Which government reforms improved PSB performance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/india-psbs-record-profit\/#Some_Important_Current_Affairs_Links\" >Some Important Current Affairs Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"India_PSBs_record_profit_for_the_fourth_consecutive_year_as_Public_Sector_Banks_achieve_%E2%82%B9198_lakh_crore_profit_with_lowest_NPA_levels_banking_reforms_RBI_policies_and_economic_growth_insights_for_UPSC_SSC_Banking_Railway_and_PSC_exams\"><\/span>India PSBs record profit for the fourth consecutive year as Public Sector Banks achieve \u20b91.98 lakh crore profit with lowest NPA levels, banking reforms, RBI policies, and economic growth insights for UPSC, SSC, Banking, Railway, and PSC exams.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indias_Public_Sector_Banks_Achieve_Record_Profit_for_Fourth_Consecutive_Year\"><\/span>India\u2019s Public Sector Banks Achieve Record Profit for Fourth Consecutive Year<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strong_Financial_Performance_of_PSBs\"><\/span>Strong Financial Performance of PSBs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s Public Sector Banks (PSBs) have achieved a historic milestone by recording their highest-ever combined net profit of nearly \u20b91.98 lakh crore in FY 2025\u201326. This marks the fourth consecutive year in which state-owned banks have reported strong profitability, reflecting the significant transformation of India\u2019s banking sector in recent years. The achievement highlights improved financial discipline, better governance, and stronger asset quality across government-owned banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Growth_in_Banking_Business_and_Credit_Expansion\"><\/span>Growth in Banking Business and Credit Expansion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The combined business of PSBs expanded to approximately \u20b9283.3 lakh crore during the financial year. Deposits increased by over 10%, while advances grew by around 15.7%, indicating rising credit demand in sectors such as agriculture, retail, MSMEs, and infrastructure. This growth demonstrates the important role PSBs continue to play in supporting India\u2019s economic development and financial inclusion initiatives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Improvement_in_Asset_Quality\"><\/span>Improvement in Asset Quality<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most remarkable developments has been the sharp decline in Non-Performing Assets (NPAs). Gross NPAs declined to nearly 1.93%, while Net NPAs fell to 0.39%, the lowest levels recorded in the history of Indian PSBs. Reduced bad loans indicate stronger loan recovery mechanisms, improved credit appraisal systems, and stricter financial monitoring by banks and regulatory authorities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_Reforms_Behind_the_Turnaround\"><\/span>Government Reforms Behind the Turnaround<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The success of PSBs is closely linked to several reforms introduced by the Government of India and the Reserve Bank of India (RBI). Measures such as bank recapitalization, consolidation of public sector banks, implementation of the Insolvency and Bankruptcy Code (IBC), digital banking expansion, and enhanced corporate governance have strengthened the banking ecosystem. These reforms helped banks recover stressed assets and improve operational efficiency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Technology_and_Digital_Banking\"><\/span>Role of Technology and Digital Banking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Technology adoption has significantly improved operational efficiency in PSBs. Increased use of digital payments, mobile banking, UPI services, AI-based monitoring systems, and data analytics has reduced operational costs and improved customer service. The cost-to-income ratio of PSBs improved considerably due to digitization and automation initiatives undertaken during recent years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Position_and_Financial_Stability\"><\/span>Capital Position and Financial Stability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Public sector banks also maintained a strong capital adequacy ratio (CRAR) of around 16.6%, which remains well above the regulatory requirement. This strong capital base provides banks with greater capacity to lend and support economic growth while ensuring stability in the financial system. Healthy profitability and internal accruals have reduced dependence on government support compared to earlier years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Support_for_Key_Economic_Sectors\"><\/span>Support for Key Economic Sectors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PSBs played a major role in financing priority sectors such as MSMEs, agriculture, housing, and infrastructure. Retail, agriculture, and MSME lending witnessed strong growth during FY26. These sectors are crucial for employment generation and inclusive development in India. The strong financial performance of PSBs ensures continued credit availability to these sectors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significance_for_Indias_Economy\"><\/span>Significance for India\u2019s Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The strong profitability of PSBs indicates growing resilience in India\u2019s financial system. During the last decade, many PSBs suffered heavy losses due to mounting bad loans and weak governance. However, the present turnaround demonstrates improved financial discipline and stronger institutional capacity. A healthy banking sector is essential for economic growth, investment, industrial expansion, and job creation in the country.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\" id=\"india-psbs-record-profit\"><img decoding=\"async\" src=\"data:image\/jpeg;base64,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\" alt=\"india psbs record profit\" style=\"width:668px;height:auto\" title=\"india psbs record profit\"\/><figcaption class=\"wp-element-caption\">india psbs record profit<\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_This_News_is_Important\"><\/span>Why This News is Important<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_for_Banking_and_Economy_Questions\"><\/span>Important for Banking and Economy Questions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The record profit earned by Public Sector Banks is highly important for competitive examinations because banking reforms, NPAs, and financial sector performance are regular topics in UPSC, SSC, Banking, Railway, Defence, and State PSC examinations. Questions related to banking sector reforms and government initiatives are frequently asked in current affairs sections.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indicator_of_Economic_Stability\"><\/span>Indicator of Economic Stability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The profitability of PSBs reflects the overall strength of India\u2019s economy and financial system. Banks act as the backbone of economic growth because they provide loans to industries, businesses, farmers, and consumers. A profitable banking sector indicates higher economic activity, improved financial management, and stronger investor confidence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Success_of_Government_Reforms\"><\/span>Success of Government Reforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This development also highlights the success of major banking reforms introduced during the past decade. Measures like bank mergers, recapitalization, digitization, Insolvency and Bankruptcy Code (IBC), and stricter monitoring of bad loans have contributed to the turnaround of PSBs. Understanding these reforms is important for aspirants preparing for economy and governance topics.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relevance_for_Financial_Inclusion\"><\/span>Relevance for Financial Inclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Public Sector Banks play a key role in implementing government welfare schemes and promoting financial inclusion in rural and semi-urban areas. Their strong financial condition ensures better delivery of credit and banking services to weaker sections of society, farmers, and small businesses.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Historical_Context\"><\/span>Historical Context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Banking_Crisis_and_Rising_NPAs\"><\/span>Banking Crisis and Rising NPAs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">During the early 2010s, many Public Sector Banks in India faced severe financial stress due to rising Non-Performing Assets (NPAs). Excessive corporate lending, weak credit assessment, and economic slowdown resulted in large unpaid loans, especially in infrastructure and power sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Governments_Banking_Reforms\"><\/span>Government\u2019s Banking Reforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To address the crisis, the Government of India launched several reforms. The Insolvency and Bankruptcy Code (IBC) was introduced in 2016 to speed up loan recovery. The government also recapitalized banks by injecting capital and merged several PSBs to improve efficiency and reduce operational costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shift_Towards_Digital_Banking\"><\/span>Shift Towards Digital Banking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s digital revolution also transformed the banking sector. The expansion of UPI, online banking, mobile applications, and digital payment infrastructure improved banking accessibility and reduced operational inefficiencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_to_Profitability\"><\/span>Return to Profitability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After years of losses, PSBs returned to profitability in FY2022. Since then, their profits have steadily increased every year due to better asset quality, improved governance, stronger recoveries, and increased lending activities. The FY2026 performance marks the fourth consecutive year of record profits for PSBs.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_from_This_News\"><\/span>Key Takeaways from This News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>S.No.<\/th><th>Key Takeaway<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>Public Sector Banks recorded a historic net profit of \u20b91.98 lakh crore in FY2025\u201326.<\/td><\/tr><tr><td>2<\/td><td>FY2026 marked the fourth consecutive year of profitability for PSBs.<\/td><\/tr><tr><td>3<\/td><td>Gross NPA ratio declined to 1.93%, while Net NPA ratio fell to 0.39%.<\/td><\/tr><tr><td>4<\/td><td>PSBs\u2019 total business increased to \u20b9283.3 lakh crore with strong credit growth.<\/td><\/tr><tr><td>5<\/td><td>Government reforms, digitization, and improved governance played a major role in the turnaround of PSBs.<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">india psbs record profit<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Related_to_Indias_PSBs_Record_Profit\"><\/span>FAQs Related to India\u2019s PSBs Record Profit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_are_Public_Sector_Banks_PSBs\"><\/span>1. What are Public Sector Banks (PSBs)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Public Sector Banks are banks in which the Government of India holds a majority stake of more than 50%. Examples include State Bank of India, Punjab National Bank, and Bank of Baroda.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_What_was_the_record_profit_earned_by_PSBs_in_FY2025%E2%80%9326\"><\/span>2. What was the record profit earned by PSBs in FY2025\u201326?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s Public Sector Banks collectively earned a record net profit of nearly \u20b91.98 lakh crore in FY2025\u201326.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_does_NPA_mean_in_banking\"><\/span>3. What does NPA mean in banking?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">NPA stands for Non-Performing Asset. It refers to loans on which the borrower has stopped making interest or principal repayments for a specified period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Why_did_PSBs_become_profitable_again\"><\/span>4. Why did PSBs become profitable again?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PSBs returned to profitability due to government reforms, better loan recovery, reduced NPAs, digitization, recapitalization, and improved banking governance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_What_is_the_Insolvency_and_Bankruptcy_Code_IBC\"><\/span>5. What is the Insolvency and Bankruptcy Code (IBC)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">IBC is a law introduced in 2016 to speed up the recovery of bad loans and resolve bankruptcy cases efficiently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_What_is_the_role_of_RBI_in_the_banking_sector\"><\/span>6. What is the role of RBI in the banking sector?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Reserve Bank of India (RBI) regulates banks, controls monetary policy, maintains financial stability, and supervises banking operations in the country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Which_sectors_received_major_loans_from_PSBs\"><\/span>7. Which sectors received major loans from PSBs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Major lending sectors included MSMEs, agriculture, housing, infrastructure, and retail loans.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Why_is_this_topic_important_for_competitive_exams\"><\/span>8. Why is this topic important for competitive exams?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Questions related to banking reforms, NPAs, RBI, public sector banks, and economic developments are frequently asked in UPSC, SSC, Banking, Railway, and State PSC examinations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_What_is_CRAR_in_banking\"><\/span>9. What is CRAR in banking?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">CRAR stands for Capital to Risk-Weighted Assets Ratio. It measures a bank\u2019s financial strength and stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Which_government_reforms_improved_PSB_performance\"><\/span>10. Which government reforms improved PSB performance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Key reforms included bank mergers, recapitalization, digitization, stricter NPA monitoring, and implementation of the Insolvency and Bankruptcy Code (IBC).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Current_Affairs_Links\"><\/span>Some Important Current Affairs Links<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/national\/\" target=\"_blank\" rel=\"noreferrer noopener\">State Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" 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India\u2019s Public Sector Banks Achieve Record Profit for Fourth Consecutive Year Strong Financial Performance of PSBs India\u2019s&#8230;<\/p>\n","protected":false},"author":6,"featured_media":51033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,14],"tags":[23361,6630,1775,193,37079,267,24784,1814,339],"class_list":["post-50993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-banking","tag-banking-current-affairs","tag-banking-reforms","tag-financial-sector","tag-government-exams","tag-ibc","tag-indian-economy","tag-npa","tag-public-sector-banks","tag-rbi"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/comments?post=50993"}],"version-history":[{"count":3,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50993\/revisions"}],"predecessor-version":[{"id":51034,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50993\/revisions\/51034"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media\/51033"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media?parent=50993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/categories?post=50993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/tags?post=50993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}