Mumbai, May 12 -- Public Sector Banks (PSBs) in India delivered strong financial performance in FY2025-26, driven by healthy business growth, improved asset quality, higher profitability and strong capital buffers, according to data released by the Ministry of Finance.

The combined business of PSBs rose 12.8% year-on-year to Rs.283.3 lakh crore as of March 31, 2026. Aggregate deposits increased 10.6% to Rs.156.3 lakh crore, reflecting steady depositor confidence and strong resource mobilisation. Gross advances grew 15.7% year-on-year to Rs.127 lakh crore, indicating sustained credit demand across sectors of the economy.

Credit growth remained broad-based across the Retail, Agriculture and MSME (RAM) segments. Retail loans grew 18.1%, ag...