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India's PSBs witness significant improvement in financial health: Ministry of Finance
Jul-29-2026

Ministry of Finance in its latest report has said that Indian Public Sector Banks (PSBs) have witnessed a significant improvement in their financial health, with healthy balance sheets, historically high profits and multi-decadal low level of gross non-performing assets (GNPAs).

Net profit of India's public-sector banks nearly tripled over the past five years to a record Rs 1.98 lakh crore in FY26 as compared to Rs 0.67 lakh crore in FY22, while the total business of Public Sector Banks rose to Rs 283.3 lakh crore as of March 31, 2026, from Rs 181.5 lakh crore as of March 31, 2022, with deposits increasing to Rs 156.3 lakh crore and total loans & advances to Rs 127 lakh crore.

Besides, the Ministry noted that the gross NPA ratio declined to an all-time low of 1.9 per cent as of March 31, 2026, from 7.3 per cent as of March 31, 2022. Their capital adequacy ratio also improved to 16.6 per cent at the end of FY26 from 14.6 per cent at the end of FY22.


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