New Delhi, July 29 -- Public sector banks (PSBs) recorded a significant improvement in financial health during FY26, with record profits, stronger deposits and gross non-performing assets (GNPAs) declining to a multi-decade low, the Finance Ministry said.

PSBs' Gross NPAs Fall to Multi-Decade Low

The gross NPA ratio of PSBs fell to 1.9 percent as of March 31, 2026, from 2.6 percent a year earlier and 7.3 percent at the end of FY22.

PSBs' net profit increased to Rs 1.98 lakh crore in FY26 from Rs 1.78 lakh crore in FY25, while total deposits rose to Rs 156.3 lakh crore from Rs 142 lakh crore during the same period.

Retail loans also recorded stronger growth, expanding 19.8 percent in FY26 compared with 17.7 percent in FY25, reported Mo...