Public Sector banks post record Rs.1.78 trillion profit in FY25, growth up 26%

Current Context: India’s public sector banks (PSBs) posted a record cumulative net profit of ₹1.78 trillion in FY25, marking a 26% year-on-year growth.

Key Highlights:

• Total Profit: ₹1.78 trillion, up from ₹1.41 trillion in FY24.
• Top Contributor: State Bank of India (SBI) accounted for 40% of total earnings, posting a ₹70,901 crore profit (16% growth).
• Highest Growth: Punjab National Bank (PNB) recorded a 102% increase, reaching ₹16,630 crore.
• Government Reforms: The 4R strategy (Recognizing NPAs, Resolution, Recapitalization, and Reforms) played a key role in this turnaround.
• Sector Recovery: From ₹85,390 crore losses in FY18 to record profits in FY25.

Question:

Q.1 What was the cumulative net profit of India’s Public Sector Banks (PSBs) in FY25?
a) ₹1.78 trillion
b) ₹85,390 crore
c) ₹1.41 trillion
d) ₹70,901 crore

Answer: a) PSBs posted a record profit of ₹1.78 trillion in FY25, up from ₹1.41 trillion in FY24, showing a 26% year-on-year growth.