Public sector banks reported over ₹93,000 crore net profit in April-September
Banks were advised to further strengthen risk management, underwriting practices, and operational resilience to sustain profitability in an evolving financial environment.”
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AJAY VERMA
Public sector banks reported nearly 10 per cent growth in net profit during April-September period of current fiscal, Finance Ministry data showed.
In a review meeting with PSBs on Wednesday, the Ministry stressed the need to sustain momentum in low-cost deposit mobilisation and credit growth, particularly in the MSME (Micro, Small and Medium Enterprises) and agriculture sectors.
The meeting, chaired by Financial Services Secretary M Nagaraju with the Managing Directors and Chief Executive Officers of PSBs, reviewed key areas including financial performance, asset quality, recovery and resolution, digital transformation and progress under government flagship schemes. UIDAI made a presentation on the usage of Aadhaar for digital identity integration and de-duplication. Discussions were also held on the theme of human AI convergence in banking.
It was reported in the meeting that PSBs, reported a net profit of over ₹93,000 crore reflecting steady year-on-year growth. “Return on assets was 1.08 per cent while the cost of funds improved to 4.97 per cent, reflecting better efficiency and profitability,” a statement by the Finance Ministry said. Further, “Banks were advised to further strengthen risk management, underwriting practices, and operational resilience to sustain profitability in an evolving financial environment.”
Digital banking
The Secretary emphasised that digital banking must remain inclusive and secure, urging banks to enhance cyber resilience, ensure operational continuity and improve the quality and timeliness of grievance redressal. Adoption of responsible AI and data analytics was encouraged to improve customer service delivery.
On the asset quality front, it was noted that PSBs continued to register improvement in recoveries. National Asset Reconstruction Company Ltd (NARCL) has acquired debt aggregating ₹1.62 lakh crore and achieved significant recoveries during the first half of the year. Banks were advised to leverage digital platforms such as BAANKNET for faster and transparent resolutions and to maintain focus on strengthening early warning systems.
Nagaraju urged PSBs to sustain financial discipline, deepen customer-centricity, and lead India’s banking transformation with prudence, innovation and inclusion as guiding principles. The meeting also witnessed the launch of the Startup Loans module on the Jan Samarth Portal and the release of the report of PSB Manthan 2025, outlining the PSB’ ’ collective vision and roadmap towards Viksit Bharat @ 2047.
Published on November 12, 2025
