New Delhi, May 12 -- Public Sector Banks (PSBs) reported an all-time high aggregate net profit of Rs 1.98 lakh crore in FY 2025-26, registering the fourth consecutive year of profitability, supported by credit growth, improved asset quality and higher income.

According to the Ministry of Finance, aggregate operating profit of PSBs stood at Rs 3.21 lakh crore during the fiscal, while net profit rose 11.1 per cent year-on-year.

The aggregate business of PSBs increased to Rs 283.3 lakh crore as of March 31, 2026, up 12.8 per cent from the previous year. Deposits rose 10.6 per cent to Rs 156.3 lakh crore, while gross advances increased 15.7 per cent to Rs 127 lakh crore.

Credit growth remained broad-based across retail, agriculture and MSM...