New Delhi, July 28 -- India's public sector banks closed FY26 in their strongest financial position in decades, with gross non-performing assets (NPAs) falling to a record low and combined profit touching an all-time high, underscoring the sector's transformation after years of balance-sheet clean-up.

According to information shared by the finance ministry in the Rajya Sabha on Tuesday, public sector banks' (PSBs) gross NPA ratio fell to 1.9% at the end of FY26, while combined net profit rose to a record Rs.1.98 trillion.

Replying to separate questions in the Rajya Sabha, minister of state for finance Pankaj Chaudhary said the financial health of PSBs has improved significantly, supported by stronger balance sheets, sustained credit gro...