PSU banks record 9% growth in profit to record ₹49,456 cr profit in Q2

Core Insights - Public sector banks (PSBs) in India achieved a record cumulative profit of ₹49,456 crore in Q2 FY26, marking a 9% year-on-year growth despite two banks reporting declines [1][2] - The total profit for all 12 PSBs in the September quarter of FY25 was ₹45,547 crore, indicating an increase of ₹3,909 crore compared to the same quarter of the previous fiscal year [1] Group 1: Performance Highlights - State Bank of India (SBI) contributed 40% to the total earnings, with a net profit of ₹20,160 crore in Q2 FY26, reflecting a 10% increase from the previous fiscal year [2] - Indian Overseas Bank reported the highest net profit growth at 58%, reaching ₹1,226 crore, followed by Central Bank of India with a 33% rise to ₹1,213 crore [2] Group 2: Declines and Variations - Bank of Baroda and Union Bank of India were the only two banks to report profit declines, with Bank of Baroda's profit falling 8% to ₹4,809 crore and Union Bank of India experiencing a 10% decline to ₹4,249 crore [3] - Other banks like Bank of Maharashtra and Punjab & Sind Bank reported a 23% rise in profit, while Canara Bank, Punjab National Bank, and Indian Bank saw increases of 19%, 14%, and 12%, respectively [4] Group 3: Overall Trends - In the first quarter of FY26, PSBs recorded a profit of ₹44,218 crore, an 11% increase from ₹39,974 crore in the previous quarter [5] - For the first half of FY26, the aggregate profit of PSBs exceeded ₹90,000 crore for the first time, totaling ₹93,674 crore, which is nearly a 10% growth compared to ₹85,520 crore in the same period of FY25 [5]