The Finance Ministry has scheduled a review meeting with the CEOs of public sector banks (PSBs) on August 20 to assess their Q1 FY26 performance.
Chaired by Financial Services Secretary M Nagaraju, the session will analyse record profits led by SBI alongside mixed results across other state owned banks, as per CNBC TV18 report.
As per the report, the Finance Ministry will convene heads of all public sector banks for a detailed review of their April June quarter results. The meeting, led by Financial Services Secretary M Nagaraju, comes at a time when PSBs reported record earnings but with uneven performance across institutions.
Collectively, the 12 PSBs posted a record profit of ₹44,218 crore in Q1 FY26, an 11% year on year growth. This marked an improvement of ₹4,244 crore over the ₹39,974 crore earned in the same quarter of FY25.
State Bank of India (SBI) remained the dominant player, contributing 43% of the sector’s total profits. The lender reported a net profit of ₹19,160 crore, reflecting a 12% increase compared to the year ago quarter. SBI continues to hold the largest share of the PSB market in both size and profitability.
In terms of percentage growth, Indian Overseas Bank recorded the sharpest increase, with net profit rising 76% to ₹1,111 crore. Punjab & Sind Bank followed, with a 48% jump in profit to ₹269 crore.
Not all PSBs shared in the gains. Punjab National Bank reported a steep 48% fall in net profit, slipping to ₹1,675 crore from ₹3,252 crore in the same quarter last year. PNB was the only state owned lender to post a decline in profitability for the quarter.
Read More: Minimum Balance Rules: RBI Leaves It to Banks, Here’s What You Should Know.
The upcoming August 20 review will give the Finance Ministry an opportunity to take stock of PSBs’ strong earnings momentum led by SBI, while also addressing concerns over uneven performance, particularly the sharp decline at PNB.
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Published on: Aug 18, 2025, 8:54 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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