Public sector banks post 18% growth in profit to record ₹52,603 cr in Q3

Core Insights - Public sector banks (PSBs) in India achieved a record cumulative profit of ₹52,603 crore in Q3 of the current fiscal year, marking an 18% year-on-year growth [1] - State Bank of India (SBI) contributed 40% of the total earnings, with a net profit of ₹21,028 crore, a 24% increase from the previous fiscal year [2] - The aggregate profit of PSBs for the nine months ending December 2025 reached ₹1,46,277 crore, reflecting a nearly 13% growth compared to the same period in FY25 [5] Profit Growth - All 12 PSBs reported a combined profit of ₹44,473 crore in the December quarter of FY25, with an increase of ₹8,130 crore compared to the same quarter of the previous year [1] - Indian Overseas Bank reported the highest net profit growth of 56% to ₹1,365 crore, followed by Central Bank of India with a 32% rise to ₹1,263 crore [2] - Other banks with significant profit growth include Bank of Maharashtra (27%), Canara Bank (26%), Punjab & Sind Bank (19%), UCO Bank (16%), and Punjab National Bank (PNB) (13%) [3] Quarterly Performance - PSBs recorded a profit of ₹49,456 crore in Q2, a 9% decrease from ₹45,547 crore in Q1 of FY25, while Q1 saw an 11% increase to ₹44,218 crore compared to ₹39,974 crore in Q4 of FY25 [4] Credit and Deposit Growth - The credit growth for PSBs is reported at 12%, while deposit growth stands at 10%, indicating a healthy banking sector [6] - Financial Services Secretary M. Nagaraju expressed confidence that the combined profit of PSBs could exceed ₹2 lakh crore in the current financial year [5]