BANKING & FINANCE
Banking Affairs
Public Sector Banks Record Benchmark Profit of ₹1.98 Lakh Crore in FY 2025–26
India's Public Sector Banks (PSBs) reported a record-high combined net profit of ₹1.98 lakh crore during Financial Year 2025–26.
Net profit grew by 11.1% year-on-year, marking four consecutive years of consistent profitability across state-owned lenders.
The total business volume of PSBs reached ₹283.3 lakh crore as of 31 March 2026, demonstrating a 12.8% annual expansion.
Asset quality metrics improved sharply, with Gross NPA ratio dropping to 1.93% and Net NPA declining to 0.39%, while the Capital Adequacy Ratio (CRAR) stood strong at 16.6%.
Exam Perspective: Consecutive profitable years highlight structural recovery, lower provisioning needs, and improved asset quality in Indian public sector banking.
Net profit grew by 11.1% year-on-year, marking four consecutive years of consistent profitability across state-owned lenders.
The total business volume of PSBs reached ₹283.3 lakh crore as of 31 March 2026, demonstrating a 12.8% annual expansion.
Asset quality metrics improved sharply, with Gross NPA ratio dropping to 1.93% and Net NPA declining to 0.39%, while the Capital Adequacy Ratio (CRAR) stood strong at 16.6%.
Exam Perspective: Consecutive profitable years highlight structural recovery, lower provisioning needs, and improved asset quality in Indian public sector banking.
Key Facts / Static GK
Capital to Risk-Weighted Assets Ratio (CRAR) assesses a bank's capital relative to its risk exposure to ensure stability.
Practice Quiz — 29 July 2026
Q1. How many pieces of ₹10 polymer banknotes has the Reserve Bank of India proposed for field trials?
Answer: (B) 100 crore pieces — The Reserve Bank of India proposed the field trial introduction of 100 crore pieces of ₹10 notes alongside 100 crore pieces of ₹20 notes.
Q2. What was the growth rate of India's Index of Industrial Production (IIP) recorded for June 2026?
Answer: (C) 7.3% — According to the Quick Estimates released by MoSPI, India's industrial production grew by 7.3% year-on-year in June 2026.
Q3. What total penalty amount was collected by private banks in FY 2025–26 for failing to maintain the Minimum Average Balance?
Answer: (C) ₹4,948.71 crore — Private sector banks collected ₹4,948.71 crore in FY 2025–26 as non-maintenance penalties for minimum account balances.
Q4. What was the year-on-year growth rate of net profit recorded by Public Sector Banks in FY 2025–26?
Answer: (C) 11.1% — The aggregate net profit of Public Sector Banks increased by 11.1% year-on-year to reach ₹1.98 lakh crore in FY 2025–26.
Q5. What is the primary function of the newly launched 'Axis Finance Drishti' engine?
Answer: (B) Digital Credit Decision-Making & Risk Monitoring — Axis Finance Drishti is a digital Business Rules Engine (BRE) engineered to refine credit decisioning and risk monitoring across MSME and retail operations.
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