SBI Leads Public Sector Banks Which Together Record ₹49,456 Crore Profit in Q2 FY26

SBI led India’s public sector banks (PSBs) to a record cumulative profit of ₹49,456 crore in the second quarter of FY26, marking a 9% rise from the same period last year. The performance highlights the continued strength of state-run lenders, even as a few banks posted profit declines.

SBI Contributes 40% to Total PSB Earnings

Market leader State Bank of India (SBI) was the top contributor to the PSB earnings, accounting for 40% of the total profit.

SBI reported a net profit of ₹20,160 crore in Q2 FY26, up 10% year-on-year, reflecting healthy loan growth and stable asset quality.

Strong Growth Across Several Banks

Among the smaller lenders, Indian Overseas Bank (IOB) recorded the highest profit growth of 58%, reaching ₹1,226 crore. It was followed by Central Bank of India, which saw a 33% rise to ₹1,213 crore.

Here is a full breakdown of the performance of small banks:

Profit Declines for Bank of Baroda and Union Bank

Not all PSBs posted gains during the quarter. Bank of Baroda reported an 8% decline in profit to ₹4,809 crore, compared to ₹5,238 crore a year ago. Similarly, Union Bank of India witnessed a 10% drop in its bottom line to ₹4,249 crore.

Half-Year Profit Crosses ₹90,000 Crore for the First Time

For the first half of FY26, PSBs achieved a historic milestone, with aggregate profits crossing ₹90,000 crore for the first time. Cumulative earnings stood at ₹93,674 crore, nearly 10% higher than the ₹85,520 crore recorded in the same period of FY25.

Read more: SBI Q2 FY26 Results: Net Profit Rises 9.97% YoY to ₹20,160 Crore.

Conclusion

Led by SBI’s strong performance, India’s public sector banks continued to post solid results in Q2 FY26. While a few lenders reported profit declines, the overall growth momentum remained intact, underscoring the improving financial health and operational strength of state-run banks.

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