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

• Financial Services Secretary M Nagaraju projects combined profit of public sector banks (PSBs) to exceed Rs 2 lakh crore in the current financial year (FY26).
• PSBs' credit growth stands at 12% and deposit growth at 10%, indicating a robust Indian banking sector.
• Profitability has seen significant growth, from Rs 1.05 lakh crore in FY23 to Rs 1.78 lakh crore in FY25, driven by improved asset quality and credit growth.
• 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%.
• Government is considering raising the FDI limit in PSBs from 20% to 49% to strengthen their capital base, with inter-ministerial consultations underway.