New Delhi, July 28 -- Public Sector Banks (PSBs) witnessed a robust improvement in asset quality in FY 2025-26, with Gross Non-Performing Assets (GNPA) falling to a record-low 1.9 per cent and combined net profit hitting an all-time high of Rs 1.98 lakh crore, the Ministry of Finance said.

As per a statement by the Finance Ministry, the aggregate business of PSBs crossed Rs 283 lakh crore in FY26, alongside robust credit growth, with MSME and retail lending rising 19.6 per cent and 19.8 per cent, respectively.

"The financial health of Public Sector Banks (PSBs) have shown significant improvement with healthy balance sheets, historically high profits and multi-decadal low level of gross non-performing assets (GNPAs)," the Ministry said i...