India’s banking system is accelerating on the path of growth. In the financial year 2024-25, public sector banks (PSBs) recorded a historic combined profit of ₹1.78 lakh crore. This marks a 26% increase compared to the ₹1.41 lakh crore profit posted in FY 2023-24.

This means public sector banks added ₹37,100 crore more in profit this year than last year, underlining the strength and resilience of India’s banking sector.

According to official data, all 12 public sector banks contributed to this performance, reflecting improvements in credit growth, asset quality, and cost efficiency. Experts attribute this surge in profitability to strong loan recoveries, higher interest margins, and enhanced digital infrastructure across banks.