Public Sector Banks (PSBs) posted their highest-ever annual net profit of nearly Rs 1.98 lakh crore in 2025-26, primarily backed by improved asset quality and stronger balance sheets, according to the Finance Ministry. As per the data released by the Finance Ministry on Friday, the aggregate business of PSBs touched Rs 283.3 lakh crore as of March 31, 2026. Gross Non-Performing Assets (GNPA) also declined to 1.93%, while Net Non-Performing Assets (NNPA) declined to 0.39%.
Department of Financial Services (DFS) Secretary M Nagaraju on Friday chaired the performance review meeting, which was attended by senior DFS officials, State Bank of India Chairman, Managing Directors and Chief Executive Officers of PSBs, along with executive directors.
While the banks performance remained strong, the government advised them to remain prepared amid the ongoing geopolitical tensions arising due to West Asia crisis.
“The discussions also underscored the need for Public Sector Banks to adopt prudent expenditure and austerity measures at all levels while maintaining resilience amid evolving global uncertainties. Banks were advised to provide proactive and need-based support to eligible borrowers under ECLGS 5.0, strengthen grievance redressal mechanisms with adequate oversight, improve operational efficiency and explore new business opportunities to sustain profitability and long-term growth,” the finance ministry said in a release on Friday.
Meanwhile, the DFS also launched a Common Landing Portal for Unclaimed Financial Assets in collaboration with the PSB Alliance with an aim to help individuals search and trace unclaimed financial assets across the financial ecosystem, including dormant bank deposits, insurance claims, shares and mutual funds.
The initiative is expected to improve accessibility and simplify the process for citizens seeking to recover unclaimed assets. As per the government estimates, Indian banks together hold around Rs 78,000 crore in unclaimed deposits, and unclaimed insurance policy proceeds are estimated at nearly Rs 14,000 crore, while unclaimed amounts in mutual funds are about ₹3,000 crore. In addition, unclaimed dividends account for around Rs 9,000 crore.