SBI fuels PSU Banks’ profit surge to record ₹1.78 lakh crore in FY25; contributes 40% alone

State Bank of India (SBI), the country’s largest public sector lender, has emerged as the most profitable bank in India for FY25, outpacing leading private sector peers such as HDFC Bank and ICICI Bank. SBI alone accounted for over 40% of the total net profit generated by all listed public sector banks during the fiscal year.

In FY25, SBI reported a standalone net profit of ₹70,901 crore, marking a 16% increase from ₹61,077 crore in FY24. The bank’s operating profit crossed the ₹1 lakh crore milestone, rising 17.89% year-on-year to ₹1,10,579 crore.

On a consolidated basis, SBI posted a net profit of ₹77,561 crore (approximately $9.2 billion) in FY25. According to Bloomberg data, this places SBI among the world’s most profitable companies, alongside global giants such as Alphabet, Apple, NVIDIA, and JPMorgan Chase.

HDFC Bank, India’s largest private sector lender, ranked second with a net profit of ₹67,347.36 crore in FY25, followed by ICICI Bank, which reported a net profit of ₹47,226.99 crore.

Public Sector Banks Deliver Record Profits

The collective net profit of all 12 public sector banks (PSBs) reached an all-time high of ₹1.78 lakh crore in FY25, reflecting a 26% year-on-year (YoY) growth from ₹1.41 lakh crore in FY24. The incremental profit stood at approximately ₹37,100 crore compared to the previous fiscal.

SBI was the primary contributor, accounting for over 40% of the cumulative PSU Banks’ earnings in FY25.

Punjab National Bank recorded the highest net profit growth among PSBs, more than doubling its profit to ₹16,630 crore — a 102% YoY increase. Punjab & Sind Bank followed with a 71% rise in profit to ₹1,016 crore.

All 12 PSBs reported profit growth during the year. Central Bank of India saw a 48.4% increase to ₹3,785 crore, while UCO Bank’s profit rose 47.8% to ₹2,445 crore. Bank of India posted a 45.9% growth in net profit to ₹9,219 crore.

Pune-based Bank of Maharashtra reported a 36.1% rise in net profit to ₹5,520 crore, while Indian Bank, headquartered in Chennai, posted a 35.4% increase to ₹10,918 crore in FY25.

The public sector banking segment has witnessed a remarkable turnaround, transitioning from cumulative losses of ₹85,390 crore in FY18 to a record profit in FY25 — underscoring the improved financial health and operational resilience of state-owned banks.

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