Big improvement in PSBs’ financial health, profits at historic highs: Finance Ministry

3 min readNew DelhiUpdated: Jul 28, 2026 08:41 PM IST In 2025-26, loan growth was 16%. Over four years, PSBs have increased their lending by 71%.Public sector banks are in good health and have seen an improvement in their key metrics, including profits which are at all-time highs, while bad loans are the lowest in several decades, the Ministry of Finance informed the Parliament on Tuesday. “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). Further, PSBs have recorded sustained credit growth across different sectors of the economy,” Minister of State for Finance Pankaj Chaudhary said in a written response to a question in the Rajya Sa