India’s Listed Banks Cross ₹4 Lakh Crore Profit Mark for the 1st Time in FY26

Listed Commercial Banks reported consolidated net profit of ₹4.11 lakh crore in FY26, up 4.5% from ₹3.93 lakh crore in the previous year, as per news reports. It was the 1st time the sector's combined profit crossed the ₹4 lakh crore mark.  

Standalone net profit rose 7.5% to ₹3.95 lakh crore from ₹3.68 lakh crore a year earlier.The increase came alongside growth in lending and deposit mobilisation across the banking system during the financial year. 

3 Largest Banks Accounted for Major Share 

State Bank of India, HDFC Bank and ICICI Bank remained the biggest contributors to sector earnings. The 3 lenders together reported consolidated net profit of ₹2.13 lakh crore, accounting for more than half of the industry's total profit. 

The banks also held a significant share of business volumes. By March 2026, they accounted for 43% of total deposits and 44% of advances across the banking sector. 

Deposit and Credit Growth Continued 

Total deposits in the banking system stood at ₹251.6 lakh crore at the end of FY26, compared with ₹226.9 lakh crore a year earlier, a growth of 10.9%. 

Advances increased to ₹212.2 lakh crore from ₹184.7 lakh crore, a rise of 14.9%. Public sector banks recorded 16% growth in advances, while private sector banks reported 14% growth.  

Deposits at public sector banks rose 10%, while private banks posted 13% growth. 

Private and PSU Banks Report Similar Profits 

Private sector banks reported aggregate consolidated profits of ₹2.09 lakh crore during FY26. Public sector banks followed closely with profits of ₹2.01 lakh crore. 

On a standalone basis, net profit at state-run banks increased 11% to ₹1.98 lakh crore. Private banks recorded a 4% rise to ₹1.96 lakh crore.  

The profit contribution of both groups remained broadly similar despite public sector banks accounting for around 61% of total banking business. 

Factors Affecting Earnings 

Profit growth was moderated in the final quarter by a rise in government bond yields and changes in foreign exchange regulations. Benchmark bond yields increased by 45 basis points during the quarter, affecting treasury income. 

Banks were also impacted by the introduction of a $100 million cap on net open positions shortly before the end of the financial year. 

Read More: Mukesh Ambani Draws No Salary from Reliance Industries for 6th Consecutive Year in FY26! 

Conclusion 

Higher lending, steady deposit growth and stable profitability across both public and private sector lenders helped listed banks post record earnings in FY26, with consolidated net profit crossing ₹4 lakh crore for the first time. 

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