**Executive Summary**
This document presents the Government of India's response to Unstarred Question No. †1203 in Lok Sabha, answered on December 8, 2025, regarding the financial performance of Public Sector Banks (PSBs). The response covers the review of PSBs' financial performance, their progress in achieving targets under various government schemes, and their total net profit. The information includes financial data up to FY 2024-25, with updates on scheme disbursements until October 2025.
**Key Points / Main Content**
* **Oversight and Management:**
* The general superintendence, direction, and management of bank affairs vests in the Board, as per the Banking Companies Acts of 1970 and 1980, and the State Bank of India Act, 1955.
* **Regular Review Meetings:**
* Regular meetings are held with the top management of PSBs to discuss progress under reform agendas and flagship financial inclusion schemes.
* **Government Schemes:**
* The financial inclusion schemes include PM SVANidhi, Kisan Credit Card (KCC), Stand-up India, and Pradhan Mantri Mudra Yojana.
* **Kisan Credit Card (KCC):**
* As of September 30, 2025, all banks have a total of 7.81 crore KCC accounts with ₹ 10.39 lakh crore outstanding, of which PSBs account for 2.22 crore KCC accounts with ₹ 4.19 lakh crore outstanding.
* **Stand-up India Scheme:**
* Banks have sanctioned 2.75 lakh loans worth ₹ 62,791 crores, with PSBs accounting for 2.28 lakh loans amounting to ₹ 51,191 crores.
* **Pradhan Mantri Mudra Yojana:**
* Banks disbursed ₹ 2.54 lakh crore till October 2025 during FY 2025-26, with PSBs disbursing ₹ 1.03 lakh crore.
* **Financial Performance (FY 2014-15, FY 2023-24, and FY 2024-25):**
* Net Profit: Increased from ₹ 45,743 crore in FY 2014-15 to ₹ 1,41,202 crore in FY 2023-24 and ₹ 1,78,364 crore in FY 2024-25.
* Net Interest Margin: 2.55%, 3.06%, 2.91%
* Return on Assets: 0.53%, 0.95%, 1.09%
* Return on Equity: 9.08%, 14.57%, 15.79%
* *Source: Reserve Bank of India*
**Impact Analysis**
**Key Stakeholders:**
* Public Sector Banks (PSBs)
* Government of India (Ministry of Finance)
* Beneficiaries of Government Schemes (PM SVANidhi, KCC, Stand-up India, Pradhan Mantri Mudra Yojana)
* Reserve Bank of India
**Impact**
This provides a summary of performance under key metrics and flagship schemes
**Action Required**
PSBs should be aware of their performance metrics, and follow all governance/oversight frameworks including regular meetings and management direction.
Key Entities Referenced
Public Sector Banks (PSBs): Banks owned by the government, whose financial performance is the central topic of the parliamentary question.
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980: Act pertaining to the acquisition and transfer of banking companies.
State Bank of India Act, 1955: Act governing the State Bank of India.
Kisan Credit Card: Government scheme providing credit to farmers.
Pradhan Mantri Mudra Yojana: Government scheme providing loans to small entrepreneurs.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. †1203
ANSWERED ON MONDAY, DECEMBER 8, 2025/AGRAHAYANA 17, 1947 (SAKA)
Financial performance of Public Sector Banks
†1203. SHRI VIJAY BAGHEL:
SHRI NALIN SOREN:
SHRI PARBHUBHAI NAGARBHAI VASAVA:
SHRI VIJAY KUMAR DUBEY:
SMT. MAHIMA KUMARI MEWAR:
SMT. HIMADRI SINGH:
SHRI JANARDAN MISHRA:
SHRI SHIVMANGAL SINGH TOMAR:
SHRI JYOTIRMAY SINGH MAHATO:
SHRI ALOK SHARMA:
SHRI ANIL FIROJIYA:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has reviewed the financial performance of Public Sector Banks (PSBs);
(b) if so, the details thereof;
(c) the performance of Public Sector Banks in recent years, based on relevant indicators such as net
interest margin, return on assets and return on shareholding in comparison to Financial Year 2014-
15;
(d) whether the Government has also reviewed the progress made by the Banks in achieving the targets
of Government schemes like Kisan Credit Card, Stand-up India and Pradhan Mantri Mudra Yojana,
and if so, the details thereof; and
(e) the total net profit earned by all the Public Sector Banks together during the last financial year?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (e): As per the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and
1980, and the State Bank of India Act, 1955, the general superintendence, direction and management
of the affairs and business of the bank vests in its Board. Further, regular meetings are held with the
top management of Public Sector Banks (PSBs) from time to time to discuss progress under various
reform agendas and flagship financial inclusion schemes initiated by the Government including, PM
SVANidhi, Kisan Credit Card, Stand-up India, Pradhan Mantri Mudra Yojana, etc. Performance of PSBson select financial parameters viz., net profit, net interest margin, return on assets and return on equity
is placed at Annexure.
As on 30.9.2025 banks have a total of 7.81 crore KCC accounts with an outstanding amount of ₹ 10.39
lakh crore out of which PSBs have a total of 2.22 crore KCC accounts with an outstanding amount of ₹
4.19 lakh crore. Under Stand-up India Scheme, banks have sanctioned 2.75 lakh loans amounting to
₹ 62,791 crores, out of which PSBs have sanctioned 2.28 lakh loans amounting to ₹ 51,191 crores.
Further, under Pradhan Mantri Mudra Yojana, banks have disbursed ₹ 2.54 lakh crore till October, 2025
during the current FY 2025-26 out of which PSBs have disbursed ₹ 1.03 lakh crore.
*****Annexure
Lok Sabha Unstarred Question no. 1203 dated 8.12.2025 regarding “Financial Performance of Public
Sector Banks”
Performance of PSBs on select financial parameters
Parameter FY 2014-15 FY 2023-24 FY 2024-25
Net Profit (₹ crore) 45,743 1,41,202 1,78,364
Net Interest Margin 2.55% 3.06% 2.91%
Return of Assets 0.53% 0.95% 1.09%
Return on Equity 9.08% 14.57% 15.79%
Source: Reserve Bank of India
*****