The Finance Ministry scheduled a meeting of public sector bank chiefs (PSBs) on Wednesday to assess their financial performance in the first quarter of the current fiscal year.

According to reports, M. Nagaraju, the Secretary of Financial Services, will chair the meeting. In the April–June quarter of 2025–26 (Q1 FY26), public sector banks reported strong earnings.

Key Highlights

• On August 20, Finance Ministry, led by Secretary M Nagaraju, reviews PSBs’ Q1 FY 26 performance.
• PSBs achieved ₹44,218 crore profit in Q1—a robust 11% YoY gain, meeting ministry review.

The 12 PSBs reported a record profit of Rs 44,218 crore, up 11 percent from the same quarter last year. In comparison, these banks earned Rs 39,974 crore in the June quarter of 2024-25, representing an absolute increase of Rs 4,244 crore.

The State Bank of India (SBI) remained the most significant contributor, accounting for 43% of total profits. The country's largest lender reported a net profit of Rs 19,160 crore in the first quarter of FY26, a 12% increase over the same period the previous year.

The State Bank of India continues to dominate the public banking sector in terms of size and earnings. Among other banks, Indian Overseas Bank saw the greatest percentage increase in profit, rising 76% to Rs 1,111 crore. The Punjab & Sind Bank followed with a 48% increase in profit to Rs 269 crore.

The Central Bank of India reported a 32.8 percent increase in net profit to Rs 1,169 crore, while the Indian Bank saw a 23.7% increase to Rs 2,973 crore. The Bank of Maharashtra reported a 23.2% increase in profit to Rs 1,593 crore.

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However, among the 12 PSBs, only the Punjab National Bank (PNB) reported a profit decline. Its net profit fell 48% to Rs 1,675 crore, compared to Rs 3,252 crore in the same quarter last year.

The Finance Ministry's review meeting is expected to take stock of these results, discuss the state of the banking sector, and assess the outlook for the remainder of the fiscal year.