New Delhi, May 12 -- Public Sector Banks (PSBs) recorded an all-time high aggregate net profit of Rs 1.98 lakh crore in FY 2025-26, marking the fourth consecutive year of profitability amid strong credit growth, improved asset quality and enhanced operational efficiency.

According to official data, the total business of PSBs rose 12.8 per cent year-on-year to Rs 283.3 lakh crore as of March 31, 2026. Aggregate deposits increased 10.6 per cent to Rs 156.3 lakh crore, while gross advances grew 15.7 per cent to Rs 127 lakh crore, reflecting sustained credit demand across sectors.

Credit growth remained broad-based across Retail, Agriculture and MSME (RAM) segments during the financial year. Retail advances grew 18.1 per cent, agriculture a...