PSU Banks Set to Cross Rs 2 Lakh Crore Profit Milestone in FY26: DFS Secy Nagaraju

• Financial Services Secretary M Nagaraju expects combined profit of public sector banks (PSBs) to exceed Rs 2 lakh crore in the current financial year.
• PSBs' credit growth is at 12% and deposit growth at 10%, indicating a healthy banking sector.
• Gross NPA is at a record low of 2.30% and net NPA at 3% as of September 2025, with a provisioning coverage ratio of 94.63%.
• PSBs declared a dividend of Rs 34,990 crore in FY 2024-25, with the Government of India's share at Rs 22,699 crore.
• The Finance Ministry is considering raising the FDI limit in PSBs from 20% to 49% to strengthen their capital base.