PSU Banks Post Record ₹49,456 Crore Profit in Q2; Finance Ministry to Review Performance on Wednesday

The Finance Ministry has convened a meeting of the chiefs of public sector banks on Wednesday to review the second quarter and half-year financial performance. The meeting would be chaired by Financial Services Secretary M. Nagaraju. Last week, Finance Minister Nirmala Sitharaman said the country needs large, world-class banks, and discussions are on between the Reserve Bank and the lenders in this regard. This is the first meeting since then. The Finance Minister had said, "The government is considering this, and work has already begun. We are discussing it with the RBI. We are also in talks with the banks."

Public sector banks posted a record profit of ₹49,456 crore in the second quarter of the current financial year
According to Amar Ujala sources, the review meeting with public sector banks on November 12 will discuss their financial figures, as well as the progress of key government schemes. Public sector banks posted a record profit of ₹49,456 crore in the second quarter of the current financial year. Despite a decline in the figures of two banks, the profits of public sector banks increased by 9 percent year-on-year.

All 12 PSBs put together reported a net profit of ₹45,547 crore in the September quarter of FY2025. Therefore, the profits of public sector banks surged by ₹3,909 crore over the same quarter of the previous financial year. According to data published on stock exchanges, SBI alone contributed 40 percent to the total income of banks of Rs 49,456 crore. SBI achieved a net profit of Rs 20,160 crore in the second quarter of FY2026. This is 10 percent more than the same period of the previous financial year.

In percentage terms, Chennai-based Indian Overseas Bank reported the highest increase in its profit by 58 percent. The bank's profit was recorded at Rs 1,226 crore. This was followed by the Central Bank of India's net profit, which increased by 33 percent to Rs 1,213 crore. Bank of Baroda and Union Bank of India reported a decline of 8 percent and 10 percent, respectively, in their profits during the quarter.