Public sector banks post record Q3 net profit of Rs 52,603 crore, up 18%

Strong credit growth and stable asset quality pushed PSU banks’ Q3 profits up 18%, with SBI contributing 40% of total earnings

PGurus Newsdesk

February 9, 2026

India’s public sector banks posted robust Q3 results, with cumulative profits crossing ₹52,600 crore

Strong credit growth lifts PSU banks’ Q3 earnings by 18%

Public sector banks (PSBs), led by State Bank of India (SBI), posted a record cumulative net profit of ₹52,603 crore in the third quarter of the current financial year, marking an 18% year-on-year increase, according to data disclosed on stock exchanges.

All 12 PSBs together had reported a profit of ₹44,473 crore in the December quarter of FY25, translating into an absolute increase of ₹8,130 crore in Q3 of FY26.

SBI leads earnings surge

SBI, the country’s largest lender, accounted for nearly 40% of the total profits, reporting a standalone net profit of ₹21,028 crore in the quarter—up 24% from the corresponding period last year. The strong performance reaffirmed SBI’s position as the dominant profit contributor among state-run banks.

Smaller lenders show sharp growth

In percentage terms, Chennai-based Indian Overseas Bank recorded the highest growth, with net profit surging 56% to ₹1,365 crore. Central Bank of India followed with a 32% rise in profit to ₹1,263 crore.

Among other lenders, Bank of Maharashtra reported a 27% increase in profit, while Canara Bank posted a 26% rise. Punjab & Sind Bank (19%), UCO Bank (16%), and Punjab National Bank (13%) also recorded double-digit growth during the quarter.

However, Bank of Baroda, Union Bank of India, Indian Bank, and Bank of India reported single-digit profit growth in Q3.

Strong momentum through the year

On a sequential basis, PSBs had reported a 9% rise in profit to ₹49,456 crore in the second quarter of FY26, compared with ₹45,547 crore in the September quarter of FY25. In the first quarter, profits grew 11% year-on-year to ₹44,218 crore.

For the nine months ended December 2025, aggregate profits of PSBs crossed the ₹1.45 lakh crore mark for the first time. Collectively, the banks earned ₹1,46,277 crore during April–December FY26, compared with ₹1,29,994 crore in the same period last year, registering a growth of nearly 13%.

Profit may cross ₹2 lakh crore: Govt

Speaking to PTI, Financial Services Secretary M Nagaraju expressed confidence that the combined profit of public sector banks could cross ₹2 lakh crore in the current financial year.

Highlighting the sector’s resilience, Nagaraju said PSB credit growth stood at 12% this year, while deposit growth of around 10% was also “reasonably very good.”

“Banks are the bellwether for the strength of the economy. They are resilient, and we have very prudent management systems in place under the RBI. We are not much worried about external factors negatively impacting our banking sector,” he said.