Banks Net Profit Hits Record ₹4 Lakh Crore

In the fiscal year ending March 2026 (FY26), India's banking sector celebrated a landmark achievement, with consolidated net profits soaring past ₹4 lakh crore for the first time. The leading financial institutions, State Bank of India (SBI), HDFC Bank, and ICICI Bank, collectively contributed over half of this impressive aggregate. This surge in profitability marks a significant milestone for the Indian financial landscape.

Private sector banks slightly outperformed their state-run counterparts, reporting a combined net profit of ₹2.09 lakh crore compared to ₹2.01 lakh crore from public sector banks. However, the overall industry growth faced some constraints. A notable 45-basis-point increase in benchmark government bond yields during the fourth quarter and the last-minute imposition of a $100 million cap on net open positions reportedly curbed potential treasury income gains.

Looking ahead to FY27, the banking industry anticipates a potential slowdown in credit expansion. SBI Chairman S C Setty indicated that credit growth is expected to moderate to 13%-15% from the previous year's 17%, influenced by macroeconomic conditions and the ongoing West Asia crisis, which may impact GDP growth and inflation. The banking sector's resilience and strategic navigation of market fluctuations will be key in the coming fiscal year.